The long-awaited 1.2% BURN TAX of the Terra Luna Classic has started since September 21, 2022, at around 09:00 and with it the first conclusions about whether the launch is successful, promising or disappointing have begun.
In the first day and a half of the implementation of the 1.2% BURN TAX more than 350,000,000 LUNC have been “burned”, dropping to 6.9 trillion the total amount of coins on the blockchain.
The goal of the Terra Luna Classic community is to reduce the number of LUNC to 10 billion. When the coins reach this number, then the 1.2% BURN TAX will be stopped in order to stabilize the amount of LUNC.
It is understood that if the community achieves the goal of reducing LUNC to 10 billion, we are talking about a great achievement that will bring unimaginable profits to current coin holders.
Is the start of the 1.2% BURN TAX implementation a positive thing or not? There are advocates for both sides.
The Optimistic
Those who see it positively argue that the principle will encourage users and investors and therefore more and more LUNCs will be “burned” as time goes on.
Also, supporters point out that as the amount of coins decreases the chain will become more attractive and dApps will gradually start to be built on it which will increase its usefulness and therefore the number of transactions that will be made on it and consequently the number of LUNCs that will be “burned” every day.
However, the hidden card of the optimists is the large exchanges, as they believe that if they apply the “tax” to intra-exchange transactions as well, then the number of LUNCs that will be “burned” daily will skyrocket.
The Pessimistic
Those who do not believe in the future of Terra Luna Classic state that the daily number of LUNCs “burned” is small.
The example they give to support their position is the following: if 180,000,000 LUNCs are destroyed every day, it means that in one month about 5 billion will be destroyed and in one year 60 billion.
So, until almost 7 trillion LUNCs are destroyed, it will take a huge amount of time, which will discourage and frustrate users and drive them away from Terra Luna Classic.
In addition, pessimists believe that the 1.2% “tax” will discourage many from transacting within the Terra Luna Classic chain, as they will not want to pay this extra transaction amount.
It’s still early days…
Everyone can draw their own conclusions on the matter. We believe it is still too early to conclude where Terra Luna Classic is definitely headed. After all, in the cryptocurrency industry the facts are likely to turn around from one moment to the next, so it’s good in cases like this to keep a small basket.
The community and the central exchanges
For now, the Terra Luna Classic community is fighting it with all its might. In addition, it is putting tremendous pressure on the major central exchanges to apply the 1.2% BURN TAX to intra-exchange transactions as well, and not just to intra-blockchain transactions (which they are after all obliged to apply). Therefore, the fate of Terra Luna Classic can be argued to also hang on the large central exchanges.
Bitnewsbot will monitor the development of this matter and should any significant variations or news arise, we will come back and reassess the data.
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