The Terra community has passed Proposals 3568 and 4159, which will introduce a 1.2% tax burn for all on-chain transactions of LUNC on Terra Classic network. The Tax Burn mechanism is to be implemented on LUNC so as to reduce the total supply. This mechanism will continue until the total supply of LUNC reaches 10 billion. Thereafter, this mechanism will be disabled and the total supply will remain constant at 10 billion.
The tax burn is expected to go live on 20 September 2022, or at the Terra Classic block height of 9,475,200 after the proposal is submitted. Once the tax burn is live, deposits and withdrawals of LUNC via the Terra Classic network will be affected in the following manner:
- Deposits: Transactions will be taxed by the Terra Classic network before it reaches Crypto.com. The balance will be credited to your Crypto.com account after the 1.2% tax deduction by the network.
- Withdrawals: Users will receive the withdrawal amount minus withdrawal fees charged by Crypto.com and the 1.2% tax deduction by the network.
To ensure the safety of users’ funds during and after the upgrade, we will temporarily suspend deposits and withdrawals of LUNC token in both the Crypto.com App and Exchange during the network upgrade. The trading of LUNC token will not be affected. We will closely monitor the situation and resume deposits and withdrawals once the network proves to be stable.
Kindly refer to status.crypto.com for all the latest updates.
We thank our users for their support and understanding.