# Proposal to Increase the Burn Tax **URL:** \ **Category:** Governance & Proposals\ **Created:** [February 16, 2023, 4:17pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187 "2023-02-16T16:17:47Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Vegas](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/vegas/32/18992_2.png) [@Vegas](https://classic-agora.terra.money/u/Vegas)\ **Post date:** [February 16, 2023, 4:17pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/1 "2023-02-16T16:17:47Z")
Proposal to Increase the Burn Tax to 0.8% Summary: This proposal aims to increase the current burn tax from 0.2% to 0.8%. The purpose is to address the problem of not burning enough supply with the current tax in place, help to mitigate the over-minting problem, and respond to community demands for a larger tax, the overall feeling and all-time high were better when the 1.2% burn tax was in place, plus the community was united with one goal in mind. Motivation: There are several reasons why the burn tax needs to be increased. First, the current tax is not sufficient to burn significant enough coins. Second, there is significant community demand for a higher tax. Third, previous efforts to decrease the tax have not yielded the intended results. For instance, decreasing the tax to increase on-chain traffic failed to achieve the desired outcome. Similarly, the fear that the tax would harm centralized exchanges (CEXs) has not been borne out, as CEXs have adapted well to the tax, with only minor issues. Additionally, some members of the community have suggested that the high tax is a problem for Dapps to operate on the chain, but evidence suggests that most Dapps are able to function with a tax rate in place(after the guidelines made by Raider from TR), plus this proposal builds on recent suggestions, such as the proposal by Dfunk to exclude smart contract transactions from the scope of the burn tax ( [[Proposal] Exclude Smart Contraction Transactions from the scope of Burn Tax](https://classic-agora.terra.money/t/proposal-exclude-smart-contraction-transactions-from-the-scope-of-burn-tax/49666) ). However, increasing the tax will help to burn more supply and incentivize more CEXs to ask to be whitelisted like Binance, as proposed by Ed ([Signaling Proposals around 3 Optional Features in the next release - #21 by TheWildLion](https://classic-agora.terra.money/t/signaling-proposals-around-3-optional-features-in-the-next-release/50156/21) ). Proposal: I propose to increase the burn tax from the current 0.2% to 0.8%. This change will stay in place for at least three months (suggestion) to avoid a yo-yo effect. If catastrophic reactions occur, the proposal can be revisited, but previous experience suggests that the benefits of a higher tax outweigh the problems. The proposed increase will help to mitigate the over-minting problem and satisfy community demands for a larger tax. Conclusion: In conclusion, this proposal seeks to increase the burning tax from 0.2% to 0.8% to burn more supply, soften the over-minting problem, and respond to community demands for a higher tax. It takes into account previous efforts to decrease the tax and recent proposals to address concerns about the tax’s impact on Dapps and CEXs. The proposed change will stay in place for at least three months and will be revisited if necessary. Overall, this proposal offers a simple and effective solution to address a critical issue facing the chain which is the total supply. I understand that is not the only solution but in conjunction with others can help bring more interest and investors to the chain. At the end of the day, it is up to the community to decide whether or not to raise the burn tax, as the community is the driving force behind Luna Classic. Proposal: { “subspace”: “treasury”, “key”: “TaxPolicy”, “value”: “{“rate\_min”: “0.008”, “rate\_max”: “0.008”, “cap”:{“denom”: “usdr”, “amount”: “60000000000000000” }, “change\_rate\_max”: “0.0”}” } ---
**Author:** ![nobody1](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/nobody1/32/12590_2.png) [@nobody1](https://classic-agora.terra.money/u/nobody1)\ **Post date:** [February 16, 2023, 5:16pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/2 "2023-02-16T17:16:03Z")
While I believe it’s too little too late I still hope this passes, 0.2 was a mistake and I hope we can finally leave it behind. ---
**Author:** ![Osama\_Elkholi](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/osama_elkholi/32/20666_2.png) [@Osama\_Elkholi](https://classic-agora.terra.money/u/Osama_Elkholi)\ **Post date:** [February 16, 2023, 5:22pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/3 "2023-02-16T17:22:27Z")
Very nice suggestion, we want the coin to reach Pluto ---
**Author:** ![YvesMarcais](https://avatars.discourse-cdn.com/v4/letter/y/e47774/32.png) [@YvesMarcais](https://classic-agora.terra.money/u/YvesMarcais)\ **Post date:** [February 16, 2023, 5:31pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/4 "2023-02-16T17:31:11Z")
If you consider making a test, why not increase the range test to 3%. We have already tested the range 0.2%-1.2% And what do you think to make a tax rate that move with volatility. When we have high volatility that generates high volume authomaticaly we have a high rate And when we have low vol we put a low rate ---
**Author:** ![Atom1](https://avatars.discourse-cdn.com/v4/letter/a/dbc845/32.png) [@Atom1](https://classic-agora.terra.money/u/Atom1)\ **Post date:** [February 16, 2023, 5:34pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/5 "2023-02-16T17:34:57Z")
I’ll vote for it if we exclude dApp contract executions. @dfunk ---
**Author:** ![Rummy](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/rummy/32/6600_2.png) [@Rummy](https://classic-agora.terra.money/u/Rummy)\ **Post date:** [February 16, 2023, 5:43pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/6 "2023-02-16T17:43:59Z")
Absolutely no with a veto. ---
**Author:** ![dfunk](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/dfunk/32/5651_2.png) [@dfunk](https://classic-agora.terra.money/u/dfunk)\ **Post date:** [February 16, 2023, 5:45pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/7 "2023-02-16T17:45:52Z")
Excluding dapp contract executions from a code level may create a possible loophole in the tax system so the best way is to whitelist the dapp contracts so they aren’t taxed. You can read more about it here: [[Proposal] Exclude Smart Contraction Transactions from the scope of Burn Tax - #70 by dfunk](https://classic-agora.terra.money/t/proposal-exclude-smart-contraction-transactions-from-the-scope-of-burn-tax/49666/70) If the binance whitelist proposal goes through, I will be creating a prop to whitelist high volume dapp contracts so that they can be excluded from the tax. ---
**Author:** ![Luncfella](https://avatars.discourse-cdn.com/v4/letter/l/e47c2d/32.png) [@Luncfella](https://classic-agora.terra.money/u/Luncfella)\ **Post date:** [February 16, 2023, 5:54pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/8 "2023-02-16T17:54:09Z")
Pls, stop poking the rotted idea with a stick. “First, the current tax is not sufficient to burn significant enough coins.” Same for your 0.8. Vegas, wake up. It’s not October 2022. Easy No. ---
**Author:** ![pivo4et](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/pivo4et/32/15381_2.png) [@pivo4et](https://classic-agora.terra.money/u/pivo4et)\ **Post date:** [February 16, 2023, 6:00pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/9 "2023-02-16T18:00:09Z")
I fully support this proposal. ---
**Author:** ![Atom1](https://avatars.discourse-cdn.com/v4/letter/a/dbc845/32.png) [@Atom1](https://classic-agora.terra.money/u/Atom1)\ **Post date:** [February 16, 2023, 6:11pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/10 "2023-02-16T18:11:01Z")
Sweet. So long as we provide a competitive environment for utility to launch I’m cool with it. ---
**Author:** ![Vegas](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/vegas/32/18992_2.png) [@Vegas](https://classic-agora.terra.money/u/Vegas)\ **Post date:** [February 16, 2023, 6:25pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/11 "2023-02-16T18:25:21Z")
> [@dfunk](#): > > whitelist It makes sense ,thanks ---
**Author:** ![Togrul\_Aliyev](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/togrul_aliyev/32/9376_2.png) [@Togrul\_Aliyev](https://classic-agora.terra.money/u/Togrul_Aliyev)\ **Post date:** [February 16, 2023, 6:37pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/12 "2023-02-16T18:37:13Z")
i need infromation about ftx lunc coins. i lost al my lunc coin in ftx. what it will be? is there any how that my lunc coins will back or coins gone? thanks ---
**Author:** ![Adria](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/adria/32/20667_2.png) [@Adria](https://classic-agora.terra.money/u/Adria)\ **Post date:** [February 16, 2023, 6:46pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/13 "2023-02-16T18:46:59Z")
Yes plis, I want smash the button for vote yes to that proposal ---
**Author:** ![Abdullah786](https://avatars.discourse-cdn.com/v4/letter/a/df705f/32.png) [@Abdullah786](https://classic-agora.terra.money/u/Abdullah786)\ **Post date:** [February 16, 2023, 6:47pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/14 "2023-02-16T18:47:10Z")
Yes this is great proposal ---
**Author:** ![Nanook994](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/nanook994/32/19972_2.png) [@Nanook994](https://classic-agora.terra.money/u/Nanook994)\ **Post date:** [February 16, 2023, 6:49pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/15 "2023-02-16T18:49:37Z")
Any proposal from Vegas and Terra Rebels I will vote big big “ **NO WITH VETO** ”. Not once but twice! ---
**Author:** ![Joseph\_Anderson](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/joseph_anderson/32/20668_2.png) [@Joseph\_Anderson](https://classic-agora.terra.money/u/Joseph_Anderson)\ **Post date:** [February 16, 2023, 7:07pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/16 "2023-02-16T19:07:09Z")
Hey @Vegas. It seems you’ve been living under a rock for the past two months. Why don’t you use search bar in Telegram, check more Lunc groups, get little educated and see where all this is going before coming up with proposals like this. It seems you were cut out from a lot of information regarding the path of Lunc. PS It’s been so quiet lately about new mobile Rebel Station with all the goodies that community paid for $150K, it was supposed to be ready in Feburary. Any update? ---
**Author:** ![ai\_anso](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/ai_anso/32/17387_2.png) [@ai\_anso](https://classic-agora.terra.money/u/ai_anso)\ **Post date:** [February 16, 2023, 7:07pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/17 "2023-02-16T19:07:27Z")
NO. you’ve had a chance, enough ---
**Author:** ![JESUSisLORD](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/jesusislord/32/20044_2.png) [@JESUSisLORD](https://classic-agora.terra.money/u/JESUSisLORD)\ **Post date:** [February 16, 2023, 7:09pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/18 "2023-02-16T19:09:34Z")
As I never supported the removal of the 1.2% burn tax, and an increase to 0.4% to 1.5% is part of my ideal plan for LUNC, my validator JESUSisLORD will definitely be voting YES to this proposal if it’s put up for vote. ![Screenshot_20230217-060523_Telegram](https://global.discourse-cdn.com/terra/original/3X/6/f/6f0fa0994a4e44975e1a8de2fd35161b67a8f50a.jpeg) With a 0.8% burn tax we could decide using the new AnteHandler mechanism to have a 80/20% split of the tax function to give us 0.64% burn 0.16% community pool. This will be higher funding and burns than a 50% split of 0.2% (0.1% and 0.1%). So we can have 3x more burns and more funding for the CP. We can pair this with a dapp related exemption from dfunk as considered suitable by the community. Remember the initial tax drop from 1.2% to 0.2% was promised that it would lead to amazing volumes and dapps, but it never eventuated. Instead we started minting and even more minting until finally Binance had to snap the community out if it. I am looking forward to a successful tax increase proposal passing. ---
**Author:** ![xXx](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/xxx/32/683_2.png) [@xXx](https://classic-agora.terra.money/u/xXx)\ **Post date:** [February 16, 2023, 7:10pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/19 "2023-02-16T19:10:20Z")
you have my support! it may even be a higher tax. 1% ---
**Author:** ![grisu](https://sea2.discourse-cdn.com/terra/user_avatar/classic-agora.terra.money/grisu/32/20670_2.png) [@grisu](https://classic-agora.terra.money/u/grisu)\ **Post date:** [February 16, 2023, 7:29pm UTC](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187/20 "2023-02-16T19:29:15Z")
What about dividing the proposal in two parts? 1. Let the community to decide for increasing the tax rate: one simple YES or NO. 2. If YES, passed, then let the community to select which tax rate to apply: identify a pool that makes sense, ex. from 1% to 10% then a simple mathematical average should be calculated based on the weight to come out with the exact %. [Next page](https://classic-agora.terra.money/t/proposal-to-increase-the-burn-tax/50187.md?page=2)