Home Crypto Terra will burn 1.2% of any transaction in an attempt to “revive” a dead project

Terra will burn 1.2% of any transaction in an attempt to “revive” a dead project

by Chief editor

The Terra Classic quorum has adopted two proposals
They are introducing a 1.2% tax on each onchain transaction
The initiative aims to “revitalise” the project and raise the price of the native token
The Terra Classic quorum this week approved two proposals – 3568 and 4159. They introduce a tax of 1.2% on each transaction on the network. In this way, the community wants to lower the LUNC offer and raise the rate. The initiative will also affect the USDC stablecoin.

According to a statement from Binance, the changes will take effect from 20 September. The exchange noted that it will review rates and adopt the innovation as soon as possible. In addition, from today, September 9, a new trading pair – LUNC-USDT – will appear on the site.

Notably, in theory, the proposal does not affect CEX and other platforms. The new tax would only affect onchain transactions that take place directly on the blockchain.

However, some exchanges voluntarily impose the fee. This will significantly reduce inflated supply and boost the value of certain assets, including the native token LUNC.

The community has taken the news in different ways. Key Terra Classic token holders support the initiative as it will increase the value of their portfolio.

But at the same time, the change could discourage new investors. This, for example, is how Oanda senior market analyst Edward Moya commented on the situation:

“This is still a difficult period for the entire crypto industry. Investors still have a bad taste in their mouths after the collapse of Terra. Restricting new users in such a situation is short-sighted.”

Other experts called it speculation that “turns LUNC into a meme coin”. Anyway, the Terra Classic native token rate reacted positively to the changes. Despite the fact that the currency trades for fractions of a cent, the value of the asset is rising, and rapidly.

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