The Terra Luna Classic community has successfully executed a significant upgrade, shifting the distribution of the burn tax to bolster the ecosystem. The v3.1.3 upgrade, implemented on July 29, diverts a portion of the burn tax to the Oracle Pool, aiming to enhance staking rewards for validators.
Previously, 100% of the burn tax was allocated to burning LUNC tokens, a mechanism designed to reduce the circulating supply and potentially increase its value. With the new distribution model, 80% of the burn tax will continue to be burned, while the remaining 20% will be split equally between the Community Pool and the Oracle Pool.
The decision to funnel funds into the Oracle Pool is strategic. Oracles play a crucial role in providing real-world data to blockchain networks, and a healthier Oracle Pool is expected to benefit the entire ecosystem. Additionally, the allocation to the Community Pool offers more flexibility for funding development initiatives and community-driven projects.
The upgrade, spearheaded by developer Fragwerdig, was executed seamlessly without any downtime or loss of blocks. This smooth operation reflects the growing maturity of the Terra Luna Classic community and its ability to coordinate complex technical upgrades.
While the technical aspects of the upgrade have been successfully addressed, the impact on token prices remains to be seen. LUNC and USTC, the ecosystem’s primary tokens, have shown mixed performance in the aftermath of the upgrade. Although the increased staking rewards could potentially stimulate demand for LUNC, the broader cryptocurrency market conditions and investor sentiment will also play a significant role in determining price direction.
The community is now looking forward to the implementation of the Tax2Gas upgrade, a highly anticipated development that could further enhance the Terra Luna Classic ecosystem. Tax2Gas is designed to reduce transaction fees by utilizing a portion of the burn tax to cover gas costs, making the network more efficient and attractive to users.
As the Terra Luna Classic ecosystem continues to evolve, the success of the v3.1.3 upgrade and the anticipation of future developments highlight the resilience and determination of the community to rebuild and thrive.
