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What LUNC investors should know about the ongoing 1.2%-0.2% debate

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The Terra Classic [LUNC] community has been muddled in a debate since a member proposed to have the 1.2% tax burn reduced. Akujiro, a LUNC community member, had initially asked that LUNC reduced that tax burn to 0.2%.

Besides the reduction, he proposed that LUNC should add 10% of the tax profits to the community pool. Recall that some crypto exchanges, including Binance, had confirmed their support for the burn.


Here’s AMBCrypto’s Price Prediction for Terra Classic for 2022-2023


However, the bone of contention changed when Edward Kim, a prominent community member, publicly shared his thoughts on the debacle at hand.

Back, forth but here’s where I stand

Sharing via his Twitter page, Kim noted that he had carefully analyzed the pros and cons of staying put with the current tax burn. He also noted that he had considered the proposed option.

According to him, decreasing the tax could lead to an uptick in LUNC’s on-chain volume. Additionally, it could help attract new delegations via the help of validators. In his Medium post, Kim said,

“Uptick in volume will be confounded with the unlocking of new utility on the chain and thus may not be accurately measurable with the timing of this proposal.”

The blockchain expert noted that those in favor of the reduction might be doing so because of their bias. On the other hand, Kim stated that the maintenance of the 1.2% tax was also because some community members felt it was too early to change the project course.

He also mentioned that some members felt the community did not have enough data for such a step. To cap it all, Kim concluded that he was in support of the reduction. He also urged other LUNC community members to take their stand.

Where does this leave LUNC?

In light of the development, it did not seem like LUNC was getting the attention it might have wanted. According to Santiment, the LUNC social volume had reduced drastically, with its value at 50 as of 15 October.

As for its price, it did not seem like there was respite in sight. The crypto on-chain tool showed that LUNC had lost 2.76% of its value and traded at $0.000271 as of 15 October. However, the press time press did witness another 1.8% drop and stood at $0.000268.

Source: Santiment

For the LUNC trading volume, there was no stopping its decline. As of 15 October, the volume was $287.59 million, shredding off 35% from 14 October.

Source: Santiment

In conclusion, the LUNC community seemed divided about the proposal. Comments from Kim’s Twitter post showed that while some considered the reduction ridiculous, others felt 0.2% was too small and should be increased.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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