Terra Classic Community Encouraged to Increase On Chain Activity After 1.5% Tax Activation
The 1.5% on chain tax is now active on the Terra Classic network. The initiative was introduced with the goal of increasing the daily LUNC burn rate by applying a tax to every eligible on chain transaction.
With the tax now active, the next step depends on community participation. Higher on chain activity can generate more taxable transactions, which may contribute to a higher daily burn rate.
Every eligible on chain transaction is subject to the 1.5% tax. This means that increased network usage can directly support the burn mechanism.
One way community members can contribute is by using on chain swaps and trading. Users can swap LUNC for assets such as USDC or USTC directly on chain. Trading Layer 2 tokens on the Terra Classic network also creates additional on chain transaction volume.
As more users participate in on chain activity, the network processes more taxable transactions. This can help strengthen the overall burn rate while encouraging greater use of the Terra Classic ecosystem.
The success of the 1.5% on chain tax initiative will depend on continued community engagement and sustained on chain transaction volume over time.
