CEX spot trade burn program progress. Boost demand for Whitelisting

A proposal by @LUNCBurnProgram (X handle and Validator name) CEXs have multiple internal LUNC and USTC wallets and they get taxed (so it costs them money) whenever they move coins on-chain between these wallets. We know that CEXs want to gain exemption from on-chain taxes by having their wallets whitelisted. This means that we have something that CEXs want, and we should make the most of it. Please ensure you read this commonwealth post thoroughly to understand the background before you vote: https://commonwealth.im/terra-classic/discussion/14690-cex-spot-trade-burn-program-progress-and-proposed-changes The deal to the CEXs is that we will whitelist their wallets in exchange for implementing a spot trade burn tax. Refer to Binance and CoinInn examples in the link. The team from @LUNCBurnProgram has lined up a major CEX who want to be whitelisted in exchange for implementing a spot trade (off chain) burn tax. However, this major CEX will only start burning based on the condition that we get participation from more exchanges. We have received additional “we will consider if others join” answers from other CEXs. Thus, we are at a position where we need the first big fish to join to kickstart the domino effect. We will increase the probability of getting the ball rolling by boosting the demand for what we are offering to CEXs. If we raise the on-chain tax, we will boost the demand for tax exemption (wallet whitelisting), it’s a basic principle. Again, refer to the commonwealth post. We therefore propose to raise the on-chain tax to 1%, which is at the upper limit of the 0.1% to 1% currency tax range as proposed by economists, including James Tobin (DYOR). This implies that we are working within the ranges of tested currency tax models. If the tax is higher, more CEXs will apply for whitelisting in exchange for implementing spot trade / off-chain burns. Looking back, we never offered whitelisting when the tax rate was 1.2%, so we missed the opportunity when the tax rate was at 1.2%. Raising the tax will add the additional needed leverage for negotiations and we will get more CEXs to burn. On-chain and off-chain tax rates are 2 independent things. The rates should not be the same. Binance effectively implemented a 0.1% off-chain (spot trade) burn tax when the on-chain rate was still 1.2%, proving that on-chain and off-chain tax do not need to be the same. Binance changed their tax to 0.05% later. Therefore, this proposal does not change the official Global LUNC Burn Program rules and validity as established through proposal 11824. This proposal only relates to the on-chain tax rate change to 1%. A higher tax rate does not affect utility from a technical perspective. The fact that developers must cater for a burn tax in code is the challenge. Therefore, whether the tax is 0.1% or 10%, the technical development challenge remains the same. Tax2Gas will lower implementation barriers for dApp developers. An additional benefit is that the increase in tax will allow for an increase in burns during times of high on-chain activity. Timing of the implementation: We need the on-chain tax rate increase to be implemented immediately upon passing of this proposal, before the Tax2Gas enhancement is released. Refer to the commonwealth post for the reason. Voting guidelines and implication: By voting yes to this proposal, you agree that we set the LUNC and USTC tax policy to 0.01 (1%) in order to boost the demand for whitelisting. The current on-chain 80/20 split remains unchanged. The Tax2Gas development will adopt this proposed 1% tax upon completion. The outcome of this vote does not affect the validity of the #GlobalLUNCBurnProgram in any way. Whether this proposal fails or passes, the #GlobalLUNCBurnProgram remains the officially approved program. This vote only relates to raising the on-chain tax to 1%. Increasing the on-chain tax will greatly increase the probability of getting the spot trade burn program started. NOTE: Devs should please reach out to @LUNCBurnProgram so we can coordinate the tax adjustment Code change: { "subspace": "treasury", "key": "TaxPolicy", "value": "{\"rate_min\": \"0.01\", \"rate_max\": \"0.01\", \"cap\":{ \"denom\":\"usdr\", \"amount\":\"60000000000000000\"}, \"change_rate_max\":\"0.0\"}" }