The burn tax, imposed on all Terra Classic (LUNC) transactions, has been decreased by the blockchain’s Terra Classic contributors.
Terra Classic is the original Terra (LUNA/USD) coin launched after the original Terra chain’s collapse.
Lowered burn tax rate as a catalyst for growth
According to the most recent Terra news, the contributors of Terra Classic reduced the tax burn rate from 1.2% to 0.2% because they thought the previous rate would have caused a decline in network activity.
The community accepted the governance proposal known as “Proposal 5234,” which reduced the number of tokens burned with each transaction and went into effect at 8:50 A.M. ET.
This could significantly increase network activity and raise the value of the LINC cryptocurrency.
The 1.2 burn fee was intended to boost LUNC’s tokenomics, but instead, it discouraged usage and reduced on-chain activity. According to estimates from the key contributors, it reduced the transaction volume by 91.67%.
Should you buy Luna Classic (LUNC)?
On October 20, 2022, Luna Classic (LUNC) had a value of $0.00025025.
The Luna Classic (LUNC) cryptocurrency reached its all-time high on April 5, 2022, when its price rose to $119.18. Here, we can observe that the cryptocurrency’s value has fallen by $119.17 from its peak.
Luna Classic (LUNC) had a 7-day low of $0.00024346 and a 7-day high of $0.00028844 when we look at its weekly performance. This tells us that the value of the cryptocurrency is rising, having increased by $0.00004498, or 18%.
When we look at its 24-hour performance, its low point was $0.00024507, and its high point was $0.00025578. This represents an additional 4% growth, or $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.