The Terra Luna Classic community has recently introduced a “Reverse Charge” tax mechanism to its blockchain to simplify transaction tax handling. This development comes as a welcome change for developers and users alike, as it eliminates the need for senders to pay extra fees, thereby preventing double taxation.
This move aligns with the outpouring of excitement among community members in early November, following reports by CNF that Terra Classic (LUNC) had recently seen a bullish breakout from an ascending triangle pattern.
Under the new Reverse Charge mechanism, taxes are automatically deducted from the transaction amount before reaching the recipient’s wallet. This proactive approach was endorsed by Mr. Diamondhandz1, the official account and host of The Diamond Hour.
He announced that the Luncliveorg validator had voted in favor of the $LUNC proposal 12143, which aims to replace the Tax2Gas approach with a simplified tax handling system. Developers are also expected to benefit from this update, as it negates the need for them to implement complicated tax-handling systems for their decentralized applications (dApps). The system is also backward-compatible, allowing dApps to retain the original sender-side tax option if so preferred.
Historically, transactions involving smart contracts could be taxed both when funds were received and sent. This presented unnecessary costs and complications for both developers and users. However, with the new Reverse Charge mechanism, double taxation on smart contracts is effectively eliminated. Taxes are now only deducted when funds are sent from a contract to a wallet, a shift that makes the process fairer and reduces the burden on developers, particularly those migrating from other blockchain ecosystems.
The introduction of this new tax mechanism is part of a broader community effort to support the growth and stability of Terra Luna Classic. Recent token burns have been crucial to these efforts. In the latest cycle, Binance burned over 1 billion LUNC, contributing to a total of around 137 billion tokens being removed from circulation.
Additionally, the recent closure of the Shuttle Bridge further underlines the community’s commitment to the ecosystem’s stability. More token burns are anticipated to buttress the cryptocurrency’s value. Through these initiatives, Terra Luna Classic continues working towards creating a sustainable and user-friendly blockchain environment.
As of today, Terra Luna Classic (LUNC) is valued at $0.00008206, experiencing a decline of 5.00% in the past day and 10.49% in the past week. The move to a Reverse Charge tax mechanism signals the community’s commitment to innovation and user experience, invigorating the LUNC ecosystem amidst its current market status.
