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Should you buy LUNC after developers lower the burn tax rate?

By:
on Oct 20, 2022
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  • Terra Classic community successfully passed a vote to reduce the burn tax.
  • The network will only apply a tax rate of 0.2% on each transaction.
  • Market cap of LUNC increased by 10% within the last 24 hours.

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The Terra Classic contributors within the blockchain have reduced the burn tax, which was applied to all Terra Classic (LUNC) transactions.

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Terra Classic is essentially the original Terra (LUNA/USD) coin which was left behind following the launch of the new Terra chain after its collapse.

The lowered burn tax rate as a catalyst for growth

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In the latest Terra news, the contributors behind Terra Classic adjusted the tax burn rate from 1.2% down to 0.2% due to the previous rate being considered to prompt a drop in activity within the network.

This updated rate came into force at 8:50 A.M. ET after the community approved the governance proposal known as “Proposal 5234″ and decreased the number of tokens burned with each transaction.

This will likely lead to much higher network activity and can contribute to the growth in the value of the LUNC cryptocurrency.

The 1.2 burn tax aimed to improve LUNC’s tokenomics; however, it disincentivized usage and shrunk the on-chain activity. It drove down the transaction volume by 91.67% based on estimates from core contributors. 

Should you buy Luna Classic (LUNC)?

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On October 20, 2022, Luna Classic (LUNC) had a value of $0.00025025.

LUNC/USDT Chart by Tradingview.

The all-time high of the Luna Classic (LUNC) cryptocurrency was on April 5, 2022, when it reached a value of $119.18. Here we can see that the cryptocurrency is currently $119.17 lower in value than its all-time high point. 

When we review its weekly performance, Luna Classic (LUNC) had its 7-day low at $0.00024346, while its 7-day high was at a value of $0.00028844. This gives us an indication that the cryptocurrency is increasing in value, with an increase of $0.00004498 or by 18%.

When we take a look at its 24-hour performance, its low point was at $0.00024507 while its high point was at $0.00025578. This marks another 4% increase, or by $0.00001071.

With this in mind, investors might want to buy LUNC as it can climb to $0.0004 by the end of October 2022.

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