LUNC’s price jumped 45% after the community approved a proposal for a 100% Tobin tax, stopping USTC minting. The Terra Classic community is also thinking about burning 800 million USTC tokens, showing a proactive effort to manage the token’s supply.
LUNC, the native token of Terra Classic, surged by a remarkable 45%, removing a zero from its price. This substantial market shift directly follows the approval of a crucial proposal by the Terra Classic community.
The proposal, backed by an overwhelming 98.95% of the LUNC community, focuses on implementing a 100% Tobin tax on USTC swaps. This action stops the minting and reminting of USTC, aiming to prevent new USTC from entering the market and stabilize the Terra Classic ecosystem.
Layer One Task Force Sparks LUNC Surge with Quick Governance Update
The Layer One Task Force (LITF) swiftly implemented a code change, introducing a new governance parameter to enforce the Tobin tax specifically for USTC swaps. This rapid action streamlined the process, effectively halting all market swapping and minting activities related to USTC on Terra Classic.
After the proposal’s approval, LUNC’s trading volume soared from an average of $30 million to an impressive $333 million. This surge not only showcases the immediate impact of the proposal but also contributes to a notable 45% cumulative increase in LUNC’s 30-day performance.
Terra Classic Community Considers Token Burn Proposal
The Terra Classic community is currently discussing a significant proposal to burn 800 million USTC tokens, showcasing a strong commitment to managing the token’s supply and value. Despite some debate, with 54.07% in favor and 30.51% against, the proposal highlights the community’s proactive approach.
Notably, the Terra Luna Classic community has garnered substantial support for its token burning efforts, with Binance playing a crucial role. Binance’s recent burn of over 1 billion LUNC tokens demonstrates a solid partnership between crypto exchanges, validators, and the community, all collaborating towards the common goal of revitalizing the Terra Classic ecosystem.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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