The LUNC, 1.2% tax burn proposal, dubbed proposal #4661, has passed the governance vote, as confirmed by proposal author Edward Kim in a tweet. Specifically, Kim states that the parameter change has been made and will take effect from block 9,475,200.
“Terra Classic governance has passed prop 4661. The treasury parameter rates have already been updated. Once the new epoch starts (block 9,475,200), the effective tax rate will automatically be changed to 1.2%,” Edward Kim said in his tweet.
According to Terra Rebels, out of 96% cast votes, 99% supported the 1.2% tax burns, and now it’s up to them to make it work.
Related article: Terra Wallet’s Interface Updated to Include LUNC Burn Rate
The Proposal Sparked A Debate
It’s worth noting that the proposal went up for a vote just over a week ago, seven days after it was published. The proposal, which has sparked much debate in the LUNC Classic community, will charge LUNC users a 1.2% fee for all on-chain transactions when implemented. Notably, the fee is transferred to the Terra burn wallet in order to reduce excess LUNC supply.
According to the dashboard shared by reXx, a member of the Terra Rebels group, which currently handles Terra Classic development, 99.88% voted in favour of the proposal at the end of the vote.
A recent increase of more than 300% has brought LUNC remarkable success. However, some of the gains have been erased since the price action slowed recently. It is currently trading at $0.00028502, down 45.40% in the last seven days.