Reducing Tax Step by Step and Way to Implement Off-Chain Tax

Governance & Proposals
1

Summary

  1. The tax will be cut step by step.
  2. CEXs increase their trading fees for coins or tokens using Terra Classic Network like a tax.
  3. CEXs save that fees during 24hrs and send them once to the burning address every day.

Motivation

The transfering volume is decreasing nearly 1/10 before the tax implementation. 1.2% tax per an one on-chain transfer is like to be a burden to Terra Classic Nework users. Moreover, potential investers for Terra Classic will be unwilling to trade.

If off-chain tax code for an one trading applied to massive volume trading like hundreds of closing trades per one second, one trading takes 2~8 seconds for sending taxes and trading will be the bottleneck.
It costs lots of times both CEXs and Terra Classic developers to develop these off-chain tax code.

I have opinions on the way to reducing taxes and the way to encourage CEXs to implement the off-chain tax.
So, I share these opinions on this proposal.

Proposal

  1. Reduce taxes for the one on-chain transfer from 1.2% to 0.25% at the time of passing this proposal.

  2. Make all CEXs introduce aditional fees 0.25% like a tax per an one trading for the spot market only.
    (It doesn’t need network updates for on-chain.)

    2-1) It applies to all coins or tokens using Terra Classic network like LUNC and USTC.

    2-2) CEXs save that fees during 24 hours and they send that saving fees once to the offical LUNC burning addresss. CEXs do this every day untill the end of off-chain fee.

    2-3) CEXs have to burn 99% of that fee.

    2-4) CEXs get 0.1% of that fee as a reward

    2-5) CEXs give 0.9% of that as a rewards
    to their LUNCs stakers

  3. The tax rate will be cut if the total number of supplying LUNCs reaches following conditions. (same as the CEX fees)

    3-1) Reaching 3 trillions , the tax rate : 0.15%
    3-2) Reaching 1 trillion, the tax rate : 0.01%
    3-3) Reaching 0.6 trillion, the tax rate : 0.025%, ending off-chain tax implementation
    3-4) Reaching 0.3 trillion, the tax tate : 0.01%
    3-5) Reaching 0.1 trillion, the tax rate : 0.005%

  4. If the total supplying LUNCs reach 10 billions, we the community discuss and determine whether the tax implementation continues or not.

Any opinions are welcome and thank you for reading.

Sincerly,

kch2134

2

That would only increase the time needed to burn the excess tokens. You probably haven’t even calculated it.

1 Like
3

I am actually quite amazed to see some people dare to declare the 1.2% tax burnt ‘wrong’ in the name of the Community.

Mind you, the 1.2% went through the legit process of voting.

If you are so sure that in your perception that implementation of the 1.2% is wrong, you can put forward a proposal. Put your money where your mouth is.

4

No No No No No Passerby, NOOOOooooooooo dont encourage any more deep and meaningful brain farts please!!! I’m spending more and more time at the Terra Station trying to decipher the the mountains of crap that I know absolutely nothing about.
My plan from now on is to vote yes on proposals that have been submitted by well informed, well respected members that have been doing all the hard yards for the last four months.
To the brain farters… NO means NO with Veto!!!

5

Pray for a LUNC price spike to end this low-qual PR madness. Meanwhile NO w/ Veto increases the burn rate too.