Despite the dramatic sell-off of Terra ecosystem tokens, LUNC has managed to rally along with the crypto market favoring the upside.
While the plan continues to revive the chain and attract investors back, the latest surge of more than 100% over the past week after its tax burn confirmation.
At the time of writing, LUNC was trading at $0.00056, recording a daily rise of almost 55%.
LUNCUSDT. Source: TradingView
As per the new 1.2% Tax Parameter Change proposal, taxes will be charged and burned for on-chain activities, including transfers of LUNC and USTC between wallets and smart contracts.
The proposal essentially seeks to carry out a 1.2% token burn tax on all transactions in a bid to transform LUNC into a deflationary asset.
If passed by Terraform Labs (TFL), the 1.2% tax burn will be activated by September 20.
On the other hand, if the proposal fails to see the light of the day, the new dev team of the ecosystem – Terra Rebels – will offer an unofficial website, desktop app, and mobile app to facilitate tax burns.
KuCoin, in the latest announcement, stated that its services related to LUNC and USTC will remain unaffected if the community chooses not to approve the proposal.
The Seychelles-based crypto exchange has suggested users to deposit all Terra Classic tokens to avoid increased deposit fee costs.
“KuCoin will support the 1.2% tax burn when the proposal is officially approved and implemented on Terra Classic (LUNC) mainnet. Services on KuCoin will remain unchanged if the community does not approve the proposal.”
Other cryptocurrency exchanges such as Gatei.io, MEXC Global, and CoinInn also have come out in support of the new network upgrade.
