New Economic Policy for Terra Classic: Set of 4 Proposals to Align Incentives

[dfunk]

@JESUSisLORD

This would apply across the board, not isolated to a particular dapp or dapps, as far as I am aware.

There was a loophole with this approach as highlighted by a member of the Terraswap team. As a result it was decided that it would be better to whitelist dapp contracts (similar to Binance whitelisting).

This has been discussed here:

[Proposal] Exclude Smart Contraction Transactions from the scope of Burn Tax

Hi @StrathCole - thank you for your detailed feedback. For the sake of simplicity, I’m going to breakdown your argument into 2 major points: The implications of this if Binance whitelisting proposal goes through Tax sensitivity to bigger wallets (1B+ LUNC) 1. The implications of this if Binance whitelisting proposal goes through Even if the tax income drops by ~20% (MsgSend transactions), the share of contract executions will will rise to ~3.7% (instead of ~3%). This is still an insignific…

And also here:

[CODE v1.1.0] Optional Feature # 1 - Wallet Exemption to On-chain Tax

yeah the impact is not much but the possibility of it creating a loophole in the burn tax exists, as also pointed out by a terraswap team member here: [Proposal] Exclude Smart Contraction Transactions from the scope of Burn Tax - #69 by terraswap_io whitelisting contract executions seems like a better option from an implementation perspective. is this something that can be considered in the next release?

And also here:

@dfunk

The 130 validators are all the supervising committee that we need. Whitelisting of dapps can be done via governance proposals the same way Binance whitelisting was done.