Meanwhile, Terra Rebels' lead developers Edward Kim and Alex Foreshaw have backed Proposal 5234.
Edward Kim, co-author of the 1.2% tax burn proposal, disclosed in a tweet on October 15 that he voted "yes" to the proposal after conducting extensive research. In a Medium post, he outlined the implications of lowering the tax to 0.2% and contributing 10% of funds to the community pool for Terra Classic chain developments.
He believes the community pool may be utilised for emergency funds, luring DApps and projects back to the Terra Classic chain, and compensating developers for their contributions to the chain's improvement.
The tax parameter now burns 100% after each epoch, which is 7 days for LUNC. All burnt LUNC are re-minted and destroyed at the conclusion of each era. It means that the new proposal's 0.9 and 90% burn settings will really behave as a 100% burn throughout the week and re-mint 10% of burn.
Furthermore, he grounds his proposal to reduce tax burn to 0.2% on machine learning optimization. He believes that some projects or DApps have abandoned LUNC as a result of the on-chain fee, but that the majority have supported the on-chain fee. It is preferable to continue investigating because there is insufficient evidence that a 0.2% tax will improve trade volume.
Alex Foreshaw, on the other hand, unintentionally voted "No" to the tax adjustment proposal before announcing that a reduced tax rate paired with a CosmWasm upgrade will increase on-chain liquidity. It will also allow DApps to be built on Terra Classic, as well as restore lost LUNC trade volumes.
Meanwhile, validators and other members appear to support the proposal based on Binance CEO "CZ" advice to lower costs.
LUNC Price and Burn
The Terra Classic price climbed mostly as a result of the 1.2% tax burn, staking, and other governance operations. Furthermore, with its LUNC trading fee burn decision, Binance has played a major part in raising the burn rate.
At the time of writing, the LUNC price is trading at $0.00027, down more than 3% in the last 24 hours. Trading volume is dropped 50% owing to traders' negative market sentiment.
Until now, over 19 billion LUNC tokens have been burnt. Furthermore, the tax burn accounts for 6 billion LUNC, but the burn address accounts for 13 billion LUNC tokens.
