The Terra Classic community has spoken, and their verdict on the highly debated Tax2Gas proposal is clear: rejected. Despite its potential benefits for reviving LUNC and repegging USTC to $1, the proposal faced strong opposition and ultimately fell short of the necessary votes. However, there’s a twist – the story isn’t over yet.
What is Tax2Gas and Why Was it Rejected?
Tax2Gas aimed to streamline the Terra Classic network by incorporating the existing transaction tax into the gas fee, eliminating the need for separate calculations and handling. This move, coupled with a slight increase in the tax rate, promised to fuel the network’s development and support the USTC repeg to $1.
However, the proposal encountered several roadblocks. Community members and validators raised concerns about potential violations of earlier proposals regarding Know-Your-Customer (KYC) verification and a pay-per-job (PPJ) development model. These concerns, coupled with a lack of consensus on the proposal’s details, led to a decisive “No” vote, currently exceeding 48%.
Also Read: Terra Classic (LUNC): Can It Overcome $0.000137 Resistance After 53.6% Rally?
A Glimmer of Hope?
While the current vote suggests a rejection, some community members believe a revised Tax2Gas proposal, aligned with the PPJ model, could garner wider support. This would require addressing the KYC concerns and presenting a clear and transparent implementation plan that aligns with the community’s established development framework.
Market Reaction and Looking Ahead
Despite the Tax2Gas setback, LUNC and USTC have held above their respective support levels. LUNC saw a modest 2% price increase in the past 24 hours, while USTC experienced a more significant 4% jump. This suggests continued investor interest in the Terra Classic ecosystem, even amidst ongoing development hurdles.
The future of Tax2Gas remains uncertain. Whether it gets a second chance with revisions or fades into oblivion depends on the community’s willingness to compromise and find a solution that addresses their concerns while furthering the project’s goals.
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