The Terra Classic community is once again faced with an important strategic question: Should we set the on-chain burn tax to 0.05% to better align with the real-world trading environment, particularly with the example set by our largest supporter, Binance?
Currently, the on-chain burn tax is higher, which means that decentralised trading and simple token transfers are penalised more heavily than many off-chain alternatives. By adjusting the rate to 0.05% — the equivalent of burning 50% of Binance’s 0.1% trading fee — we would be directly mirroring a proven and sustainable model.
This change could open the door for greater arbitrage opportunities and increased transaction volumes across decentralised applications. Higher on-chain activity means more liquidity, more engagement, and more opportunities for the Terra Classic ecosystem to thrive.
The potential benefits go far beyond short-term market movements:
📈 Increased Demand for LUNC
A friendlier environment for traders and arbitrageurs would drive more use of LUNC, increasing market depth and liquidity.
🫂 Support for Sustainable Project Teams
More volume creates more fee revenue for builders, ensuring teams working on Terra Classic can continue delivering innovation.
👨🎓 A Sign of Maturity
Adopting a commercially sensible tax rate shows the market that Terra Classic has grown into a pragmatic, forward-thinking ecosystem.
🔥 Recognition of Off-Chain Partners
Setting a realistic tax respects and supports partners like Binance and encourages other exchanges to contribute sustainably without harming their competitiveness.
By setting the burn tax at a level that works for both decentralised users and centralised exchange partners, we send a clear message: Terra Classic is ready to balance community ideals with commercial viability. This small change could be the spark that fuels the next phase of our growth.
