LUNC Community Says Yes to Reduce the Tax Burn From 1.2% To 0.2%

• 75% of LUNC community members voted to reduce tax burn from 1.2% to 0.2%.
• Users will get withdrawal amount minus the withdrawal fees by Binance and a 0.2% tax burn.
• Tax burn will let a part of the revenue to fund the blockchain infrastructure.

The LUNC community has finally passed Proposal 5234, which addressed the reform to reduce the tax burn for on-chain transactions of LUNC and USTC on Terra Classic network.

With 75% of members voting in favor of the proposal, the tax burn rate will be reduced from 1.2% to 0.2%. As per the official announcement made by Binance, the change will come into effect today.

As soon as the new tax burn mechanism goes live, Binance will introduce a few updates to the deposit and withdrawal fees for LUNC and USTC on Terra Classic network.

In the case of deposits, Binance will reduce the 1.2% consolidation fee for all LUNC and USTC deposits to 0.2%. However, all LUNC and USTC deposits to Binance would have to pay the  withdrawal fees demanded by other platforms, wherever applicable.

The amount received by users will be the withdrawal amount minus withdrawal fees levied by Binance and the 0.2% tax burn.

The tax burn reduction was proposed by Akujiro and as a result of favorable votes, will allow a part of the revenue to fund Terra Classic blockchain infrastructure, and the teams maintaining the blockchain.

With lower tax rates, the members want to attract more on-chain users, which can churn out greater volume as well as the frequency and quantity of implementing burn taxes.

As a result of this proposal, CEXs and other off-chain holders will be brought to return on-chain for trading, sustaining the chain-run cost by building an ecosystem where higher demand can succeed with less penalty.