What This Proposal Is About
This proposal asks the Terra Classic community to upgrade the blockchain software (called the terrad client) to version 3.5.0.
What Will Happen :
● The blockchain will pause for a short time at a specific block height.
● Validators (people who run the network) will install the new version of the software.
● After that, the blockchain will restart with the upgrade.
What’s New in This Upgrade :
● A new system called the TaxExemption Module will be added.
● This allows certain wallets or groups of wallets (called zones)can be made tax-exempt. These groupings and tax rules are controlled by governance decisions, and the chain enforces them directly.
● The way taxes are handled will be built directly into the chain, making it simpler and more efficient.
Who Needs to Do Something
● Validators → Must update the software.
● Regular users → No action needed; wallets and apps will continue working normally.
The upgrade is needed because:
● Better Tax Handling – Right now, tax rules are not fully managed by the blockchain itself. This upgrade adds a built-in tax system, making it more reliable and easier to manage.
● Tax-Exempt – It introduces a way for approved wallets or groups (zones) which can help businesses, apps, and certain users save costs.
● Future Compatibility – Upgrading keeps the network’s software up to date and secure, making it ready for future features and improvements.
● Smooth Operation – Without this upgrade, the network might face limitations or inefficiencies in handling taxes and future upgrades.
