We are always looking to burn huge supply of LUNC rapidly and this might just be the solution and the risk reward ratio is good. We need to start burning 12% of staking rewards. As we know we also need to sacrifice for the greater good 12% of staking rewards might be huge but worth for the long run so even if you are staking 1 LUNC or 1 Billion lunc you will still be contributing to the burning. This proposal is only for the staking rewards and does not affect other on chain or off chain transactions.
Motivation
Centralized exchanges burn at a very lower rate because of the percentage of what they tax from the transactions. If we go with this we are increasing the burning rate rapidly let’s not forget other c0ins which tax way higher than this with that in action we can see the results from the #burnstats link as we increasingly burn at high rate 12% from our rewards is not a huge percentage because we want to see the results we really need.
Proposal ID: 5176
Of course everyone should accept that we have an issue of huge supply and we must make sure we do everything to reduce it in this way all transactions for the staking rewards will be taxed because we must be accountable for reducing the supply and that is why we must all accept the proposal.
Should everyone accept this we have very huge potential for reducing supply in a very short time.
To be honest I had hope for the burn at first, but I don’t think the lunc will do any more until some have their eyes on the prize pool.
and legally the terra team is responsible for this court decisions are waiting for them I hope they are punished.tr to issue tokens again to produce lunc to put this burden on others irresponsibly is a complete scam. If you want to create a new token/contract, you can do it as a new project on the cosmos network. not by stealing the reserve from other users’ tokens. starting from scratch
The Risk being taken by the person staking is not worth the Risk in having their LUNC locked up for 21 days.
This should not be acceptable to anyone as this DISADAVANTAGES the 10% of the community that stakes and has their LUNC locked up for 21 days.
This provides UNFAIR ADVANTAGES for the other 90% of the community that DO NOT STAKE and take no risk as their LUNC is not locked up.
You do realise that when you stake your coins it takes them out of circulation and reduces the total supply until they are UNDELEGATED ?
When coins are undelegated there are no rewards obtained for 21 days and in turn cant be sold or traded for that same 21 day period.
Encouraging staking reduces supply and the reward is the incentive for the RISK.
To ask stakers to do all this and wish to tax them ALL or ANY OF THEIR REWARDS to benefit the non stakers fails to take into consideration the RISK undertaken with 21 days your coins are being locked up and that there is no reward for 21 days after undelegating.
The return is still not that great of an incentive and that will decrease even further as more people stake in the future and the reward pool as far as I know is funded for 12-18 months ATM.
Prefer to see a tiered staking reward based on optional time frames from 7 days 14 days 21 days 28 days and still be rewarded during the undelegation phase whilst coins are locked up until released back to full control.
Key Point is that the NON STAKERS are the ones truly not committed to the process or taking on the RISK ; ))
Very much opposed to this proposal to burn ANY rewards from staking. Inconsiderate and Selfish with little understanding of the actual risks IMO.
Exactly, the stake is a high risk due its lock period.
This proposal is a double tax and will almost stop the network. The rewards are already taxed on 1.2% at transfer and are also are the ones that are using the classic network and keeping
the burning flame alive.
We have better options to burn and bring activity to the network.
Instead of adding to the supplies in wallets, burning staking rewards would add value to the existing supplies (by reducing the supply the market cap gets divided into)… @DadRulesOK & @Danoriga ~ sabotage bots?
How do you touch the coins of the majority of the coins who are sheltered by the CEXs?
How do you ensure that it’s fair to loyalists who are on Terra Station while those who are traders and hiding in the CEXs reaping rewards, doing nothing?
Me thinks you do not grasp the implications of what your proposing.
Its all great to come up with ideas but they do need additional analytical and meaningful thought of potential end consequences.
All great in theory to have fanciful concepts however this would create an unstable blockchain and risks a deadchain without investors prepared to stake.
You still have not addressed why 10% of the community sacrifice with all the risk and the other 90% does not ?
Clearly indicated that this is only for the staking rewards, you should be aware that all the transactions for staking rewards are no burned on they did not include 1.2% tax for any transaction involving staking or staking rewards.
Nothing weird about it at all.
Demonstrates to me perhaps your lack of experience or exposure to such capital restructuring mechanisms. Private and Stockmarket Listed Companies do this all the time.
It just requires some basic comprehension.
IN SIMPLE TERMS
BEFORE CONSOLIDATION
You have 100 notes and each is worth $1 in your pocket.
You therefor have $100 in Value in your pocket.
AFTER CONSOLIDATION of 1 for 10
You would have 10 notes and each would be now worth $10.
You still have $100 in Value in your pocket.
The value of LUNC is dictated by the Market Cap.
Market Cap divide by Total Supply of LUNC equals PRICE per LUNC
After the Consolidation, the Value in the Market Cap will likely increase with such a drastic supply reduction.
OTHERWISE THERE IS NO POINT IN REDUCING SUPPLY!
This Consolidation WILL Burn / Remove 6 Trillion LUNC from current supply INSTANTLY.
No one is disadvantaged and no one gains an advantage - MUCH FAIRER OUTCOME Reaches all Holders including the Whales.
I would rather keep my existing coins and burn staking rewards (would take longer than your idea and would get to the same result) and get to the same max supply (10 billion) with more Lunc in my wallet (more value in the end). Of course, we need to stabilize the system’s core to strengthen/increase the market cap after attracting great utilities.
You still RETAIN VALUE after the Consolidation
Reduces the supply - NOT the value.
Provides collateral and can fully resource the LUNC Blockchain NOW!
VALUE CREATION becomes much faster instead of taking many many many years into the future.
Yours and others ideas to tax staking rewards is flawed.
Staking Rewards is from commitments of 10% of the community who take on the Risk.
Burning rewards disadvantages Stakers.
The other 90% of the community who do not stake are provided with an unfair advantage and do not participate in any of the Risk.
Do you see the flaw ?
Stakers are what provide stability to the blockchain.
MOST IMPORTANTLY WITH A 1 FOR 10 CONSOLIDATION. No one is disadvantaged and no one gains an advantage - MUCH FAIRER OUTCOME Reaches all Holders including the Whales.