[Proposal] How to keep the 1.2% burn tax without (k)illing the chain? Cap the tax so it cost the same as an ETH tx


I think many people are starting to understand that:

(1) the real value of LUNC is derived from its community and from the real utility of the chain; and
(2) no real economic activity can take place if 1.2% of one’s assets disapear each time a transaction is done.

This is not sustainable and no big player will ever use the chain or develop any product on top of it with the current implementation of the burn tax.

That being said, I think no burn tax at all would be contrary to the express wish of the community. And LUNC community is the biggest asset and hope we currently have.

What needs to be done is to find a tax that we know will not (k)ill the usability of the chain. Which chain has had high fees in the past and still maintained usability? Yup, Ethereum.

I think the LUNC community could consider keeping the 1.2% burn tax but capping it so that the tax would never cost more than the average ETH fee on the last 12-month for example.

At the moment, this would cap the tax somewhere between $2-$5 per transaction.

With a cap of $5, the 1.2% burn tax will fully apply up to a transaction value of $417. Above that, the burn tax will be capped to $5.

What this means is that the 1.2% burn tax will apply to the vast majority of the tx made on LUNC. But will apply partially to large transactions.

Big players that do not mind paying a $5 fee on ETH will not mind paying a $5 fee on LUNC. At the same time tho, we will not (k)ill the chain and will continue to burn on the long run.

Capping the fee to something we know is acceptable in the industry based on experience (as we would do using the average ETH fee) allows for the burn tax to survive and at the same time will not preclude real economic activity and utility to continue to take place on the chain in the future.

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the small tax (to burn an inflated supply) won’t hurt our system if our system is stable and has beneficial utilities - here’s how we make the stability happen and attract utilities:

Incremental and very slow trading fees increase on Exchanges eg BINANCE

“To slowly boil scalping frogs and bleed whales by thousand cuts”

Exchanges should implement this feature:

until trading fees reach 1.2% + trading fees (eg 0.1%) on particular Exchanges eg. Binance

increase trading fees daily by + 0.1% devided by 30 (30 days in a month),

do daily : trading fees = trading fees + ( trading fees / 30 )

tax rate 1.2% devided by 365 days = 0.003287671% daily increment to trading fees

this way Exchanges will reach veeery slowly and painlessly to 1.2% burning tax rate within 12 months

and Exchanges will make profits as well, and off chain traders won’t be upset as much too

or if you really want it very slow and smooth Exchanges could do in by 60 days each increment
but it will take two years :confused: