Stake entire Burn tax and burn everything after a 30 day period

Hello all,

I asked myself if we couldn’t get more out of the burn tax than it is now, and I actually came up with this little idea, which I think can be something and can offer extra potential in various areas.

I’m curious what you think of this, it’s an idea so if it can be better, please go ahead .

Set the burn tax to 1%, the burn tax should be sent to a new wallet to be created, a stake/burn wallet, all burn taxes will first arrive at this address, automatically distributes evenly and sends to all active validators a equal amount of Lunc to stake

Every other week, the new wallet will withdraw the rewards and send them to the official burn address, at the end of a 30 day cycle the burn tax will automatic be withdrawn from all validators and sent to the official burn address.

In this way, the burn tax will contribute a 2nd time where no one will pay an extra burn tax and the validators will also benefit bigtime from this way.

The validators should also get even amount of rewards for only this adress

I think this could be something, what do you think?

@ek826

2 Likes

Sounds like a great idea, can’t we also drop the undelegate to 3-4 days too ? Does it have to be 21 days for a reason ? I feel more folks Would stake !

1 Like

I think it is because people would not take out there totale staking amount and keep staking for a longer periode :blush:

This will drain the Oracle Pool which will put the load on the community to fund it from somewhere else, meaning it could affect all the stakers. It’s no different than saying “take money from stakers/ Oracle Pool”. This idea has been presented before.

There is no incentive to stake if there are no rewards. Staking rewards aren’t magic money, they come from swap fees. Again, this will put the load on the community to pay more in fees.

The Oracle Pool will need to be filled soon as it has been going down significantly. Draining it with burns it’s a bad idea.

What you mean is that it wil goo to fast then?

Because like i see this now is that my Lunc is staked for months, i did not tough so there are no fees from my Lunc that can fill the oracle pool.

I was thinking it is the same then.

The burn tax should do exaclty the same like it is now for normal staking, validators should need to get there fees that comes from that tax like it is now when i send this for staking.

I was thinking it is a win for validators and for the burn tax because now, the burn tax is destroyed.

But that could not work ?