A major network upgrade for Terra Classic (LUNC) has been successfully completed, whereby the tax rate for “burning” coins has been changed from 0.2% to 0.5%.
Already in the first few days of the new “burn” rates, the amount of LUNC that has been taken out of circulation has increased. In total, 59 billion LUNCs have been destroyed, or 0.86% of the total amount of coins.
The upgrade took place at the height of the Terra Classic block 12,902,400 or chronologically on May 23, at approximately 10:00 p.m. (UTC).
Leading cryptocurrency exchanges, such as Binance and Kucoin, have already announced their support for the upgrade.
Upgrades to Terra Classic’s network have been quite frequent lately, in an effort by its community to bring it back to the levels it was at before its total collapse.
In May 2022, the Terra Classic ecosystem collapsed after its algorithmic stablecoin, UST, lost its peg to the US dollar.
Why the tax hike proposal passed
One of the main reasons why “Proposition 11515” to increase the “burn tax” passed is that the community sees it as a conservative increase that will not discourage investors and traders.
The main goal of the proposal is to reduce the amount of LUNC, which will make the Blockchain more attractive, and in case its usage increases, then the price of LUNC will go up as the amount of coins decreases.
The community’s goal is to reduce the amount of LUNC to 10 billion, down from the 6.791 trillion it is today.
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