This is a community led proposal for a parameter change to adjust the on-chain tax rate to 1.5%. This would bring us back to the original 1.2% burn tax, with 0.3% to fund the chain by the current on-chain 80/20% tax split (0.15% to the community pool and 0.15% to staking rewards). The original 1.2% burn tax was removed after a few weeks in 2022 which was too early to judge whether it would be a long term success, though our burns were good at that time. As we can see from the 0.5% tax raise from 0.2%, it resulted in higher burns and more funding to the chain overall, without any discernible volume loss or on-chain capital flight. We believe a 1.5% total on-chain tax is reasonable and will be accepted by the community as a whole after implementation. After a few months it will become normal just like the 0.5% tax is normal, becoming accepted as common and standard, but bringing strong benefits. In addition, the chain already has the dapp smart contract whitelist from the tax in place which dapps can apply to be listed on, as well as there was a recently passed a proposal to re-work the tax to implement it in gas fees to make it easier for dapps. This means a tax raise will not harm utility. If we make this tax adjustment we can increase our LUNC and USTC burn rate from the tax 3-fold, from 0.4% to 1.2%. We also increase our funding to the community pool from the tax 3-fold from 0.05% to 0.15%. We also increase our funding to staking rewards 3-fold, from 0.05% to 0.15%. This proposal which brings back the original burn 1.2% burn tax plus 0.3% to fund the chain is important to bring to vote before the crypto bull market, to take advantage of the high on-chain volume when LUNC rises. We have already seen large burns on 0.5% tax, and 1.5% total tax will increase our burns and funding for our chain and rewards for staking delegates. Please cast your vote: 1. YES to adjust the on-chain tax to 1.5% from 0.5%, resulting in a 1.2% burn tax and 0.3% to fund the chain (0.15% to the community pool and 0.15% to staking rewards). 2. NO to keep the current 0.5% on-chain tax the same. 3. ABSTAIN if you don't want to vote YES or NO but want to contribute to voting quorum. 4. NO WITH VETO if you wish to exercise VETO power against this proposal which could lead to the loss of the 5M LUNC deposit, which was contributed by different members of the LUNC community. Discussion: https://commonwealth.im/terra-classic/discussion/14392-parameter-change
Submitted
17 Dec 2023, 20:48:14 UTC
Vote closed
24 Dec 2023, 23:01:18 UTC
Not approved
The proposal did not produce an approved governance action.
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Quorum
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Treasury Tax Policy
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/cosmos.gov.v1.MsgExecLegacyContent/cosmos.params.v1beta1.ParameterChangeProposalReached
71.42% participating
Approval
Below threshold
41.81% decisive Yes
Veto
Below threshold
9.29% of participation
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Staking ratio
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7 days
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90 days
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