The Terra Classic developers have reduced the ‘burn tax’ charged on all Terra Classic (LUNC) token transactions from 1.2% to 0.2% as the former rate was considered to reduce network activity.
The updated rates go into effect at 8:50 a.m. ET after the community voted on governance.”Proposal 5234,” to reduce the number of tokens burned in each transaction.
Last month Terra Classic passed the voteto keep 1.2% for each LUNC transaction, and to burn that amount in an effort to reduce the supply of LUNC, believing that fewer tokens would increase its value.
But while collecting a 1.2% burn tax in the hopes of increasing LUNC prices, it reduces the incentive to use it and ends up with reduced network activity. This caused the transaction volume on LUNC’s network to drop by 91.67%, following theestimate
The post Developer Terra Classic cuts ‘burn tax’ rate from 1.2% to 0.2% in hopes of revving network activity appeared first on Bitcoin Addict.