Terra Luna Classic ecosystem, Genuine Labs has announced plans to proceed with the Tax2Gas implementation. This proposal aims to streamline the transaction process by integrating tax calculations directly into gas fees, eliminating the need for separate handling and manual calculations. This initiative, suggested by popular developer StrathCole and supported by Genuine Labs, promises to simplify the tax system on the Terra Classic chain and address several existing issues.
The current on-chain tax rate is set to increase to 1.5% under this proposal, which essentially reintroduces the original 1.2% burn tax. The remaining 0.3% will be allocated to funding the chain, maintaining the current 80/20% tax split. This adjustment is expected to enhance the efficiency and security of the Terra Classic network.
The Terra Luna Classic community initially implemented a burn tax in 2022 to reduce the supply and increase the value of LUNC. However, this system has faced numerous challenges:
- Manual Calculations: Contract developers must manually calculate the tax and adjust transaction amounts accordingly, adding complexity and potential for error.
- Client Calculations: Decentralized applications (dApps) and clients need to compute the tax themselves since the simulation endpoint only provides gas estimates.
- Migration Issues: Audited dApps face difficulties in migration due to these Classic-specific tax adjustments, often necessitating re-audits.
Genuine Labs argues that the Tax2Gas approach will resolve these issues by integrating the tax directly into the gas fee, thus offering a simpler and more efficient solution. Additionally, it will safeguard the Terra Luna Classic network against end-to-end (e2e) test attacks, enhancing overall security.
The proposed implementation requires five weeks of research, development, basic testing, and deployment. The estimated budget for this initiative is $25,000 in LUNC. Spend proposals will be submitted by developers during the initial weeks of the implementation phase and after successful testing.
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Currently, the Terra Classic network operates with a burn tax rate of 0.5%, distributed as 80% for burning and 20% allocated evenly between the Community Pool and Oracle Pool. The proposed changes are expected to streamline this process and improve the overall functionality of the network.
Terra Classic (LUNC) Market Outlook
The market has responded positively to this news, with the price of LUNC increasing by 2% in the last 24 hours, now trading at $0.0001187. Additionally, USTC has seen a more significant price rally of over 22% in the past week, currently trading at $0.02378 with a notable 52% increase in trading volume over the last 24 hours.
This proposed Tax2Gas implementation marks a pivotal step towards enhancing the Terra Luna Classic ecosystem, promising to simplify transactions and bolster network security. The community eagerly anticipates the positive impact these changes will bring.
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