KuCoin, one of the world’s top crypto exchanges, has taken a significant step by announcing its backing for Terra Classic’s recently approved proposal, known as #11515. This proposal introduces a new economic policy that replaces the existing tax burn mechanism with a 0.5% tax burn at block height 12,902,399.
Starting today, KuCoin will implement this new policy, demonstrating its swift response. Interestingly, just a day ago, Binance, another prominent crypto exchange, also expressed its support for Terra Classic’s latest major network upgrade. This upgrade aligns the Terra Classic blockchain with LUNA 2.0 and other blockchains utilizing the Cosmos protocol.
The information was first shared through an official press release and then further communicated via Twitter.
The burn tax, which previously stood at a mere 0.2%, is now set to undergo a substantial increase of 150%. This development has sparked curiosity among crypto enthusiasts on Twitter, who are eager to understand the potential impact of this new rule, slated to be enforced on May 23rd, 2023. The primary objective of the advanced burning mechanism is to significantly reduce the available supply of the beleaguered altcoin.
In just four days, the 0.5% tax burn will be implemented, serving to expedite the Terra Luna Classic (LUNC) burning mechanism. This mechanism assumes a pivotal role in the USTC repeg plan and, in addition, paves the way for the proposed USTC staking vault put forth by Redline Drifter.
Moreover, the augmented burn tax arrives at a time when the LUNC community is exerting extra efforts to revive its fortunes. Noteworthy developments on the horizon include an upcoming RPG, an AI app chain, and a remarkable surge in staking activity, reaching an all-time high.
With over $1 billion worth of LUNC tokens staked, it is abundantly clear that the community continues to demonstrate strength and resilience, even a year after enduring the most catastrophic crypto debacle ever witnessed.
A conservative approach to reduce LUNC Token supply
In the latest proposal, Proposal 11515, the Terra Classic community has shown its support for a more conservative approach by advocating for a moderate increase to 0.5%. The primary objective of this proposal, similar to its predecessors, remains focused on reducing the abundant supply of LUNC tokens.
dfunk, an active member of the LUNC community, has notably submitted this proposal among a series of four recent proposals. All four proposals share a common vision of implementing enhanced economic policies, and they have successfully gained approval from the Terra Classic community.
The remaining three proposals put forth by dfunk aim to address various aspects of improvement. One proposal seeks to augment demand by offering improved staking rewards, while another focuses on bolstering developer funding through an increase in community pool funding.
Additionally, there is a proposal dedicated to enhancing chain utility and volume by whitelisting smart contracts. The collective aim of these proposals is to provide robust support for the revitalization plan of the Terra Classic ecosystem.
KuCoin’s support for Terra Classic’s proposal #11515, alongside Binance’s endorsement of the network upgrade, reflects growing recognition for Terra Classic. The implementation of the new economic policy and upcoming developments demonstrate the resilience of the LUNC community and its commitment to revitalization.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.