Lunc burn proposal for on-chain dex v2_updated :

This is an updated Burn proposal for the chain’s futur DEX. I believe this could potentially not only bring users to the chain but burn a very significant amount of tokens every day.

Proposal :

Every buy/sell transactions on-chain will see .2% (could be much higher) of that transaction locked for a period of 60days (.2% is always locked in the form of LUNC tokens). Only after 60 days will the Burn mechanism be activated on the amount of tokens that was locked ONLY WHEN THE PRICE RISES from the time of initial purchase.

This burn mechanism functions as follows :
The .2% LUNC amount that is locked for 2 months is unlocked automatically and returned in full after the locking period if price falls below that of the time of the initial buy/sell transaction - In other words, if the price falls below our initial purchase after the two months locking period, no burn takes place. On the contrary, if the price rises anywhere above the time of initial buy/sell transaction, the us dollar $ value of .2% of our locked amount at the time of initial purchase is used as a reference to calculate the amount of LUNC tokens that will be allocated and the percentage that will be burned. Any surplus shall be sent straight to the burn wallet.

E.G. : When price rises above initial investment:

If I invest 1000$ and the price of LUNC is 0.0001$ at the time of purchase, I end up with .2% of my 10million LUNC token purchase locked.
.2 % of 10 million tokens represents 20k tokens which at the time of purchase represent a value of 2$.
Two months later the price rises to 0.0004$ - Using the initial 2$ price reference which represents .2% of initial transaction, 5k LUNC (2$) are unlocked while a 15k LUNC surplus is automatically sent to the burn address. I’m essentially not making profits from .2% of my initial investments in case the price rises but I’m maintaining the $ value on that original .2%.

E.G. When price falls below initial investment:

If I invest the same 1000$ in LUNC at a price of 0.0001$, again 20k from my 10million LUNC tokens are locked.
Two months later the price drops below my initial investment to 0.00004$. What happens then is that the 20k LUNC tokens from my initial purchase are unlocked and no burn takes place. I lose dollar value on that LUNC amount but I don’t lose any of my LUNC tokens.

Bear in mind the .2% percentage that gets locked could be much higher. Not only could we burn billions of tokens everyday but we will also preserve our users from being unfairly taxed. Let’s imagine we apply this method and raise the tax to 2, 3% or even higher - Users will perhaps be more willing to make transactions if they know part of their investment is somehow being protected. Remember this tax is only applied if there is a rise in price and even then you get part of that investment back in LUNC. Price goes up - initial dollar value is maintained. Price goes down, tokens are preserved. This is a win/win situation for both the price of LUNC, the chain, holders and traders. The higher the price goes, the more tokens get burned.
This proposal is one way to push people to migrate on-chain while we manage to maintain pressure on major CEXs to follow the communities desires for LUNC. I strongly believe this proposal would/should only be applied if we can’t get CEX’s to burn off-chain. If we can get the burns applied on all transactions on and off-chain then I believe this proposal isn’t necessary.

If we can recuperate a significant amount of the trading volume from major CEXs then we’ll perhaps have more influence and CEX’s could then be swayed to follow our lead. I think people will always want to avoid taxation as long as it isn’t applied everywhere on and off-chain, so this proposal is just one idea to help create an on-chain experience that CEX’s simply can’t have. If we manage to create an experience that is more beneficial for users to be on-chain, we will gain more power and far greater independence.

I initially posted a proposal idea that involved minting but there are too many risks associated with this, especially given our recent history. I know this is quite early to discuss this since our on-chain DEX isn’t up and running yet but I would like to start an open discussion on the feasibility of it. I believe that with the right approach and perhaps through this method, we could burn billions of tokens daily and make the chain increasingly independent from CEX’s.

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