Luna Classic Increases On Chain Tax to 1.5% Following Community Proposal

The Luna Classic community has officially approved a governance proposal to increase the network’s on chain tax from 0.5% to 1.5%.

The proposal aims to accelerate the amount of LUNC removed from circulation by directing a larger portion of transaction fees toward token burns while continuing to support the ecosystem.

How the New 1.5% On Chain Tax Is Distributed

Under the new tax structure, the 1.5% on chain tax is allocated as follows:

• 1.2% is permanently burned, reducing the circulating supply of LUNC.
• 0.15% is allocated to the Community Pool to support ecosystem development and community initiatives.
• 0.15% is allocated to the Oracle Pool to help maintain essential network operations.

This allocation is designed to increase the number of LUNC tokens burned while maintaining funding for community driven development and the blockchain’s infrastructure.

A Greater Focus on LUNC Burns

The primary objective of this proposal is to strengthen Luna Classic’s deflationary model by increasing the amount of LUNC burned through eligible on chain transactions.

With the tax rate rising from 0.5% to 1.5%, a significantly larger share of transaction fees will now be directed toward token burns. Meanwhile, dedicated allocations to the Community Pool and Oracle Pool will continue to support the long term growth and stability of the Luna Classic ecosystem.

As the updated tax structure takes effect, the community will be watching its impact on LUNC burn rates, network activity, and the overall health of the ecosystem.