To boost the tokens’ value and long-term appeal, the Terra Classic community is dedicated to limiting the number of tokens in circulation.
In response to this circumstance, a proposal to apply a 1.2% combustion tax on each on-chain transaction was approved in September. Major exchanges like Binance have jumped on board to help the community’s effort to revive the faltering blockchain and bring it back to its former glory.
Only a few weeks after this combustion tax was implemented, trade volume significantly decreased, and a reduction to 0.2% was accepted.
However, several members of the community were dismayed to see that 173 million additional LUNCs had been mined with their permission.
The proposal to pay 10% of burnt LUNCs into a community fund for project development was approved on October 17. However, some people didn’t seem to be aware that this 10% were brand-new tokens. Additionally, the 10% refers to both token destructions that are done voluntarily and the on-chain tax.
— Tobias Andersen (@ZaradarTR) October 26, 2022