Overview

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Taxing transactions on the terra classic chain accounts for approximately of the total burn. Only transactions that happen on-chain can be taxed. So this excludes trading Terra Luna Classic burn campaign has reached the 85 billion LUNC milestone as crypto exchanges, validators, projects, and members burn LUNC by sending it to the burn Hace 6 días Following the hyperinflation of Luna Classic (LUNC) in May 2025, the Terra Classic community implemented a 1.2% burn tax as a key strategy to reduce the total supply and CZ said in an AMA the 1.2% burn tax could work off-chain if all exchanges agreed to implement at the same time. We should be increasing the burn tax back to 1.2% and The Terra Classic community recently green-flagged proposal 5234, which reduced the 1.2% tax burn to 0.2% and reserved another 10% tax revenue for the ecosystem Several mechanisms contribute to the LUNC and USTC burn: Transaction Tax Burn: A tax on on-chain LUNC transactions sends a portion to the burn address. The burn rate directly correlates

USTC Volume Spikes 206% as Exchanges Reduce Terra Classic Burn Tax Rate

Recent weeks have seen a significant surge in USTC (TerraClassicUSD) trading volume, spiking by as much as 206% amidst ongoing discussions and adjustments to the Terra Classic (LUNC) burn mechanism. This increase coincides with several major cryptocurrency exchanges reducing the Terra Classic burn tax rate, impacting the overall LUNC burn strategy.

Understanding the Terra Classic Burn Tax

Following the hyperinflation of Luna Classic (LUNC) in May 2025, the Terra Classic community implemented a 1.2% burn tax as a key strategy to reduce the total supply. CZ said in an AMA the 1.2% burn tax could work off-chain if all exchanges agreed to implement at the same time.

Taxing transactions on the Terra Classic chain accounts for approximately of the total burn. Only transactions that happen on-chain can be taxed. So this excludes trading. The Terra Classic community recently green-flagged proposal 5234, which reduced the 1.2% tax burn to 0.2% and reserved another 10% tax revenue for the ecosystem. This adjustment aims to balance burning with funding ecosystem development and attracting new projects.

Impact of Reduced Burn Tax on LUNC and USTC

The reduction in the burn tax has sparked debate within the Terra Classic community. While some believe it is necessary to encourage trading activity and liquidity, others worry about its impact on the overall LUNC burn rate and deflationary goals. We should be increasing the burn tax back to 1.2% and.

Several mechanisms contribute to the LUNC and USTC burn: Transaction Tax Burn: A tax on on-chain LUNC transactions sends a portion to the burn address. The burn rate directly correlates to the volume of on-chain transactions. The reduction in this tax directly affects this burn mechanism.

Terra Luna Classic Burn Campaign Reaches Milestone

Despite the changes in tax rates, the Terra Luna Classic burn campaign has reached the 85 billion LUNC milestone as crypto exchanges, validators, projects, and members burn LUNC by sending it to the burn address Hace 6 días. This highlights the ongoing commitment of the community to reduce the LUNC supply.

Future Outlook

The interplay between exchange policies, burn tax adjustments, and community efforts will continue to shape the future of LUNC and USTC. Monitoring trading volumes, burn rates, and community sentiment will be crucial in understanding the long-term effects of these recent changes.

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