Wednesday, February 8, 2023
HomeCrypto NewsEdward Kim Proposes Solution to Reimburse Affected LUNC Users

Edward Kim Proposes Solution to Reimburse Affected LUNC Users

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Kim demands that the community compensate those who lost money when network issues arose following the 1.2% tax fee implementation.

Edward Kim, a leading developer for Terra Classic, has proposed a plan to compensate users who lost funds due to errors made while implementing the 1.2% tax burn parameter.

The plan was revealed yesterday in a tweet by the renowned Terra Classic developer. As previously stated, these users from September 21 to September 28 were taxed even though their transactions failed to complete due to issues with the tax parameter adjustment.

Read more: New Terra (LUNA) Chain and Terra Classic Network Cannot Merge

Kim claims that StrathCole, another Terra Classic developer, has located the affected addresses. As a result, he suggests that the community withdraw 296 million Terra Luna Classic (LUNC) from the pool to compensate the affected users.

The total reimbursement is 295 million LUNC, plus an additional 1 million LUNC for fees. Notably, the problem impacted over 2,000 individuals, 9 of whom lost almost 5 million LUNC. According to Kim, centralized crypto exchanges constitute most of these significant losers.

However, the proposal states that hundreds of users who lost fewer than 10 LUNC will not be compensated because of transaction costs.

According to Kim, 2,214 wallets lost between 10 and 5 million LUNC and will be algorithmically refunded 131 million LUNC. At the same time, the Terra Grants Foundation will try to get in touch with the top 9 addresses to refund roughly 165 million LUNC manually. The proposal further states that the TGF will return any extra LUNC that results from failing to identify wallet holders.

According to the proposal, TGF will publicly summarize the transactions after completing the procedure.

The most recent proposal has been applauded by many as being the right thing to do and a smart use of community pool funding. Such a move might improve the community’s relationship with centralized exchanges affected by the network failure.

However, despite agreeing with the proposal’s rationale, a well-known local influencer named Classy has questioned how the developers intend to recapitalize the community pool before the next quarter.

It is important to note that the LUNC community has been a top priority when it comes to funding the community pool to fund the development. Since 50% of all fees are remitted to the community pool after each epoch, the community approved a plan to raise network charges by 500%.

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