The other proposal to add a burn tax is pretty silly because it would never achieve desired result and would only make transactions more expensive, alienating projects and developers.
Heavily disagree. Right now luna is selling at .00021. Even if there was a 50% sell/buy tax (which I’m not suggesting, just as a ridiculous example) you could grab 234,576 LUNA for $100. The burn tax’s goal is to significantly lower the number of LUNA, ideally back to the original 100M cap. Most people trying to cash in right now are hoping to get double their money back or more due to the ludicrously low price. The tax will lower their gains, but if LUNA is constantly being burned both the speculative and actual value of each LUNA token will allow any smart investor to make a profit.
The tax would also temporarily accelerate LUNA’s appreciation of value because it would cause LUNA to appreciate in value faster when the price is lower, and slower when its value was higher. In other words, a user that sells LUNA at a lower price and a higher tax rate can expect LUNA to rise faster during that time because more LUNA is being burned, whereas someone who buys it at $1 with a non-existent tax rate can expect LUNA to act pretty normally. The person who bought it at $1 also knows the price may rise quickly if the price dips significantly.
You can not apply a burn tax on exchange transactions, only on DEX transactions. So most people would end up transacting on centralized exchanges to avoid this tax and therefore there won’t be any meaningful burn happening.
This is a legitimate issue that needs to be solved, but other coins (Safemoon) have figured out this issue already. We would just need to implement similar code (btw the proposed burn tax is different than Safemoon’s burn tax insomuch that all LUNA will be burned, whereas Safemoon distributes the tax between users. I’ll link the full proposal below.)
So what’s to be done? The fork proposal is the best idea. Both coins will retain value.
Um… if by value you mean LUNA <= .00021, LUNA2 <= .00021, then yes, both coins will ‘retain value’. Value is created when people want to invest in something. Right now LUNA is perceived to be less trustworthy than things like DOGE. A burn tax will change that, a fork will not.
Personally, I think the LUNA2 fork should be created and simultaneously a burn tax should be implemented in the original LUNA. Then we can see what actually works.
Here’s a thing that explains the burn tax a lot better than I can: