Terra Classic’s 1.2% tax burn supports bullish outlook but here’s an issue

ambcrypto.com:

Terra Classic [LUNC] had quite an exciting time in the last few days as it approached a major milestone implementation. Ever since the May crash, the community has expressed concerns over the excess LUNC supply in the market. The 1.2% tax is aimed at solving this problem.

Unfortunately, many LUNC traders and potential traders may not understand what the 1.2% tax is all about, so here’s a brief explanation. All on-chain LUNC transactions will be subjected to a 1.2% tax. This includes wallet and smart contract interactions. However, LUNC trades on exchanges might not be eligible for the tax.

The idea behind the tax is that it will help reduce LUNC’s oversupply. One of the major downsides is that it will make Terra Classic on-chain transactions more expensive.

A price that the community is willing to accept this trade-off in favor of a deflationary outcome. It is still unclear whether potential projects looking to roll out their protocols on Terra Classic will find this to be a challenge.

Burn parameter Change ?