- The 1.2% tax burn proposal is now live
- The offer will end once the total LUNC supply reaches 10 billion
- At 1:45 AM ET, Thursday, Luna Classic was trading down 7.22 to $0.0002805.
After the approval and implementation of the 1.2% tax burn, the Luna Classic community saw a staggering number of tokens sent to a dead wallet within hours. Nevertheless, it seems that the price has not yet risen as it is still in a downward trend.
The Luna Classic tax parameter change went live on Wednesday and will continue until the supply reaches 10 billion tokens. Interestingly, just a few hours after the implementation of the proposal, the LUNC validating stakebean data Report That’s 9,456,872 burned out of the overall current supply of 6.9 trillion.
The 1.2% tax burn proposal states that deposits and withdrawals of Luna Classic through the Terra Classic network will be affected. For deposits, the transaction will be taxed before reaching the Terra Classic Network cryptocurrency exchange platform.
The balance will be credited to the user’s account at a specified CEX after deduction of 1.2% tax. For withdrawals, users will receive a withdrawal fee charged by a cryptocurrency exchange platform minus a 1.2% tax deduction by the network.
Based on the proposal, the main objective of implementing a “tax + burn” mechanism on every buy-sell transaction of 1.2% burn tax is to “reduce the total supply” of Luna Classic. After the supply reaches 10 billion. Aim, 1.2% burn mechanism will be “disabled”.
Burning tokens or sending them to dead wallets is a common practice in the cryptocurrency world that will positively affect the token price. It is based on the economic principle of the law of supply and demand where prices rise when demand is high and supply is low.
Interestingly, despite burning over 9 million LUNC through the tax burn mechanism, the price of the first Terra Native token continues to trade in the red zone. LUNC traded at $0.0002804 shortly after the implementation of the tax burn and briefly gained 0.713% while trading at $0.0002824.
At 1:45 AM ET, Thursday, Luna Classic was trading down 7.22 at $0.0002805 with a 24-hour volume of $553,745,853, as of last Information From CoinMarketCap.