Luna Classic Tax Burn Goes Live

The Luna Classic tax burn is now live on the Luna Classic network.

The intense Luna crypto crash of May 2022 wiped millions off the market, rendering Luna's original token useless.

Reborn as Luna Classic, the token has received major attention from the crypto market and the Luna community.

What is the new Luna Classic tax burn all about?

Edward Kim, a renowned Luna community member, proposed the Luna Classic tax burn to help regulate Luna Classic's 6.91 trillion supply.

The tax burn is set to reduce the supply of LUNC, making the token deflationary. To do this, a 1.2% tax burn on all on-chain transactions will be applied to the Luna Classic network.

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The tax will also be implemented on all web3 wallets connected to the Luna Classic network. The tax burn will continue until the total supply of LUNC reaches 10 billion.

According to a medium post uploaded by Edward Kim, the Luna Classic tax burn is the first step toward the expansion of the Luna Classic roadmap.

Now that the tax burn is live, the LUNC team intends to redirect their focus on exploring solutions to re-peg UST, Luna Classic's depegged stablecoin that crashed in May 2022.

In Edward Kim's words:

But perhaps most importantly, by resurrecting — and drastically improving — the decentralised stablecoin, we can turn one of crypto’s biggest defeats into the most stunning turnaround in digital asset history.

The roadmap will also place credible emphasis on delivering utility to the LUNC token by introducing new use cases.

Kim reiterates in his post how the Luna Classic team is stepping up their efforts to bring new projects onto the blockchain.

The tax burn has received a positive response from several crypto exchanges, including Binance and Huobi, who have drafted detailed guidelines and advisories to help LUNC investors manoeuvre the new tax burn regime.

Get the latest up-to-date news on Luna 2.0 and Luna Classic on Planet Crypto.