Holders of Terra Classic (LUNC) could soon see a change in how the cryptocurrency burns its tokens, with a proposal suggesting a more streamlined approach. Dubbed “tax2gas,” the idea aims to simplify the burning process by merging the existing transaction tax directly into the gas fees paid by users.
Currently, LUNC transactions incur a separate 1.2% tax, with 80% burned and 20% allocated to fund development. Tax2gas proposes eliminating this separate tax and instead incorporating it into the gas fee itself. This, proponents argue, would streamline the process, potentially reduce complexity, and offer greater transparency into the burning mechanism.
The proposal comes from two developers, Jockey Jockey and Code Lover, who boast experience in blockchain development and are currently undergoing identity verification. They’ve partnered with StrathCole for conceptual support and Genuine Labs for thorough testing.
If approved, the implementation would follow a three-phase plan: an initial research period, followed by development and rigorous testing. The estimated timeline is six weeks, with a two-week buffer for unforeseen challenges. The total budget of $24,000 would be distributed based on progress achieved.
The proposal comes on the heels of governance proposal #11873, which seemingly garnered community approval for the tax2gas concept. However, the current proposal requires further community support and funding through the Commonwealth platform before it can become reality.
Potential impacts of the tax2gas approach include changes in transaction costs and potential effects on the LUNC token supply. Ultimately, the decision on whether to implement this new burning mechanism rests with the Terra Classic community. For LUNC holders and those interested in the blockchain’s future, staying informed about the voting process and potential outcomes is crucial.
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