It seems that we will need to repeat this for like the what time now??
AGAIN!
On-chain utility will be whitelisted!
As @dfunk outlined in his whitelisting proposal, dApp activity will be by default exempt from the burn tax
The 0.8% will have to go hand in hand with dfunk’s proposal, which is what I have proposed to Vegas as well. In short, on-chain activity will NOT be affected by the burn tax!
In fact, the opposite will be true.
An increase in the burn tax from 0.2% to 0.8% may pressure CEXes that have so far not indicated that they want to be whitelisted to request being whitelisted in exchange for burns as they will be paying 0.8% to access their cold wallets while Binance is paying zero.
That difference in tax may have have them approaching the community for whitelisting ,which we can agree to in exchange for the burning of fees.(There is a particular CEX with a very large cold wallet on chain I have in mind).
In addition to that. As proposed with the burn tax split, an 80/20 split would mean that around 0.15% of the burn tax would go to the Community pool. Essentially, the Community Pool would get around an extra 300-500 million LUNC per month(as well as USTC and the other stablecoins) .
To put it simply, the burn tax increase can help us fund L2 projects, not just L1 developments which will be funded by the increase in the gas fee we passed recently.
I honestly do not see any downside of the burn tax rising to 0.8% if dApps are exempt from the tax because the argument that the tax will end utility/ activity will not apply.