This will be a living document to coordinate re-launching the network without forking. Details are subject to change.
This proposal has been a work of @ek826 and the larger Terra community.
Motivation
There were several major critiques of the “BURN and REMEDY fee with each LUNA transaction” proposal which the community had drafted earlier:
1. It required CEX support to tax buy/sells, no one wants that.
2. This would decrease trading volume.
3. Good idea, but who is going to implement this? Devs need to change the code.
4. Increasing gas fees would only only affect on-chain volume and it is too low.
Proposal
Here is Edward’s implementation of the burn that hopefully addresses all of these problems with implementable action items.
- Gas fees incur a BaseBurnFee added to every on-chain transaction.
- Validators increase commission to 90%+ or near 100% . (The burn fee should not go to staked delegators)
- Validators accept gas fees, burn the base burn fee.
This requires no development changes nor does this require buy in from CEX. Trading volume will remain untouched and unaffected at this time. If devs want to help, they can automate the burn without validators needing to change their commissions and burning the fee manually.
Validators are able to set their gas fee to any desired amount. The suggested/minimum gas fee can be seen here.
https://fcd.terra.dev/v1/txs/gas_prices
As you see here, validators can set their gas price in a configuration file, ~/.terra/config/app.toml
Update minimum gas prices
1 Open ~/.terra/config/app.toml.
2 Modify minimum-gas-prices and set the minimum price of gas a validator will accept to validate a transaction and to prevent spam.
See here Configure general settings — Terra Docs documentation
What about on minimal on-chain volume? I will link to a python notebook that extracts on chain volume from the terra light client.
Here are some of the stats in summary:
There are approximately 181k transactions on-chain per day (this includes sends and dapps/wasm. It excludes oracle transactions)
Given a base burn fee of 25,000 luna at current prices (approx 4.5 USD), we can burn 3 trillion luna over 659 days, or 1.8 years. While this seems like a long time, under the fork plan, luna holders don’t get unlocked until 2 years anyway.
This is just an immediate action plan that can be implemented now and iterated upon later.
See here for reproducibility.
edk208/LunaStats/blob/main/TerraStats.ipynb
{
"cells": [
{
"cell_type": "code",
"execution_count": 31,
"id": "1fe439a5",
"metadata": {},
"outputs": [],
"source": [
"from terra_sdk.client.lcd import LCDClient\n",
"from terra_sdk.core.tx import Tx\n",
"import time"
]
},
{
"cell_type": "code",
"execution_count": 2,
"id": "b5f9b4fc",
"metadata": {},
"outputs": [],
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