[Proposal] BURN and REMEDY fee with each LUNA transaction 💊 [PART I]

Governance & Proposals
2446

How do you encourage on chain transactions if there is a higher tax for them?

Why not lower the tax to 0.1% so it would have a very low effect on the number of on chain transactions? and would still produce a lot of revenue.

1 Like
2448

you joined 4 minutes ago to write this. trolls everywhere

2449

There’s no incentive for any exchange to do this. They can “front run” and garner more fees because their 0.1% trading fee would be much lower than the tax.

As I’ve said multiple times, the tax should be somewhere around 0.1%

1 Like
2450

Someone needs to think of creative ways to incentivize burns, then implement it. I was brainstorming on the “creative ways” part, before Do Kwon gave a big “FORK YOU” to those who had invested at Terra’s darkest hour. Now, I’ve been back to thinking of it. It really depends on how much development effort I want to commit.

I tell myself, I am spending way too much time on this Lunacy. Then, I look at the large, populous colony of tiny LUNAs living in my wallet. They look back at me with sad, soulful little lunar eyes. Please help us. We are [CENSORED]. Please feed us, and make us grow. How can I resist?

P.S., what childish mind believes that it can get its way by forbidding words it doesn’t want to be perceived by itself or others? :snowflake:

d---g

1 Like
2451

Pretty sure no exchange mentioned that UST would depeg as hard as it did anytime soon, nor that it would be risky in the tiniest bit (instead, it was advertised as “safe”), and that they would have minted 7 trillion tokens to no use in under 5 minutes, to destroy Luna as well, giving us no chance to react or even know what was happening.
I must be blind because I didn’t see this mentioned anywhere.

2452

The group goes to the fork to victimize people again. If they are very honest, let them distribute all their shares to the victims. don’t get a share of the fork.

2453

Well, he doesn’t have to go to jail. Forbid him for life to engage in this business. Thus, without any regulations, one and the same man can repeat the same thing many times as if nothing had happened…And most people act like nothing happened, let’s do it again. That’s the mentality. Give us new victims to help old victims. We are a cryptomasochist.

1 Like
2455

Totally agree with this , it can even kick price to surpass ATH

2456

:joy::joy::joy: Floki Inu and Babydoge to reach $100 before Luna… mark my words :rofl:

2457

GM all victims :fire:

2458

:+1: tks for sharing the real data

2459

gm back

2460

I would like to propose a very simple and immediately implementable mechanism for the burn. I have seen several major critiques of the current proposal.

1. It requires CEX support to tax buy/sells, no one wants that.
2. This would decrease trading volume.
3. Good idea, but who is going to implement this? Devs need to change the code.
4. Increasing gas fees would only only affect on-chain volume and it is too low.

Here is my simplified/practical implementation of the burn that hopefully addresses all of these problems with implementable action items.

  1. Gas fees incur a BaseBurnFee added to every on-chain transaction.
  2. Validators increase commission to 90%+ or near 100%. (The burn fee should not go to staked delegators)
  3. Validators accept gas fees, burn the base burn fee.

This requires no development changes nor does this require buy in from CEX. Trading volume will remain untouched and unaffected at this time. If devs want to help, they can automate the burn without validators needing to change their commissions and burning the fee manually.

Validators are able to set their gas fee to any desired amount. The suggested/minimum gas fee can be seen here.
https://fcd.terra.dev/v1/txs/gas_prices

As you see here, validators can set their gas price in a configuration file, ~/.terra/config/app.toml

Update minimum gas prices
1 Open ~/.terra/config/app.toml.
2 Modify minimum-gas-prices and set the minimum price of gas a validator will accept to validate a transaction and to prevent spam.

See here Configure general settings — Terra Docs documentation

What about on minimal on-chain volume? I will link to a python notebook that extracts on chain volume from the terra light client.

Here are some of the stats in summary:
There are approximately 181k transactions on-chain per day (this includes sends and dapps/wasm. It excludes oracle transactions)

Given a base burn fee of 25,000 luna at current prices (approx 4.5 USD), we can burn 3 trillion luna over 659 days, or 1.8 years. While this seems like a long time, under the fork plan, luna holders don’t get unlocked until 2 years anyway.

This is just an immediate action plan that can be implemented now and iterated upon later.

See here for reproducibility.

13 Likes
2461

I like this, sounds logical. Thanks for you effort buddy.

@HelloThere what you think.

2462

Wow, just wow. This is why I never did Twitter before.

(…which means that I never saw Do Kwon’s most infamous tweets before I was already deeply entangled with Terra stuff.)

2463

this proposal on the governance vote list is disappear

1 Like
2464
2465

Thank you for taking the time to share this comprehensive solution with us. This sounds totally feasible.

2 Likes
2466

When is the fork plan voting for live?

2467

What if the U.S. dollar goes into hyperinflation?

I see LUNA reaching $1 million—when BTC hits at least $150 trillion!