The Terra Classic community has approved Proposal 11111, which will reverse Proposal 10983 and support Binance, the crypto exchange that has contributed the most LUNC to burn. The proposal seeks to overturn Proposal 10983, which substituted 10% for on-chain development for additional revenue for the community pool at a rate of 50% of the 0.2% burn tax.
Instead of 50% remint, the plan would contribute 10% remint to the community pool from the 0.2% burn tax. Edward Kim, a core developer for Terra Classic, rejected Proposal 10983 because it would stop Binance’s LUNC burn mechanism. With roughly 82% in favor and 2% in opposition, proposition 11111 has received enough votes to pass the threshold.
The proposal has received support from over 39 validators, while only 3 are opposed. On December 26, All nodes tweeted their support for Proposal 11111. Furthermore, the validator thinks the community should reignite the 1.2% burn tax because the volume has not increased after the burning tax was reduced from 1.2% to 0.2%.
Why is Terra Classic’s price rising?
Ahead of the Christmas season, Terra Classic price got a push last week as the price saw a significant increase. The price of LUNC has increased by about 10% over the past 24 hours, and is currently trading at $0.0001575. The speculation that Coinbase would list LUNC has also helped the market surge. In the past 24 hours, the trade volume has increased by more than 110%.
Furthermore, the recent rise of LUNC might have been influenced by the proposal made public by the new Terra Classic Layer 1 team. The “Joint L1 Task Force” of the Terra Classic team published a proposal describing its work for the following three months. The team announced that it will be hired to complete the necessary changes during this time. The most well-known members of the new squad are Edward Kim and Zaradar.