The Terra Luna Classic community has approved a new tax management proposal that aims to simplify the tax system on the Terra Classic network. This “Reverse Liability” mechanism changes how taxes are deducted on transactions, making it easier for developers and users to use the system.
Tax Management Offer Details
In a recent announcement, the newly introduced Reverse Charge mechanism will allow taxes to be deducted directly from the transaction amount before being transferred to the receiving wallet. This change provides convenience for developers and end users as senders do not need to pay extra taxes.
One of the key benefits of the Reverse Liability system is the elimination of double taxation for smart contracts. In the previous system, contracts were taxed both when receiving and sending money, creating extra costs for developers and users.
LUNC Token Burn
The new tax proposal follows token burning efforts aimed at reducing LUNC’s total supply and increasing the value of the asset. In the last burn cycle, the Binance exchange burned 1.048 billion LUNC tokens, bringing the total amount of tokens burned by the community to approximately 137 billion.
With these measures, the Terra Luna Classic ecosystem has been expanded, delegating millions of LUNC to support the network’s validators and other key participants.
Shuttle Bridge Closure
The closure of the Shuttle Bridge has increased the community’s hope for the future of LUNC. Community member Leonardo, while answering recent questions about the shuttle bridge and expected burns, said, “The shuttle bridge is closing, we will adapt when the burn occurs.”
“The expected closure did not happen, but the good news is the shuttle bridge is now closed. “We will adapt when the bridge burning occurs.” – Leonardo
With the closure of the Shuttle Bridge, the Terra Classic community expects to burn additional LUNC and USTC tokens to stabilize and support the ecosystem.
As a result, these steps in tax management and token burning by the Terra Luna Classic community are expected to have significant impacts on improving the ecosystem and increasing the value of LUNC.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
