LUNC Burn Rate Skyrockets 300% as Community Approves Tax Hike

The Terra Luna Classic (LUNC) community has approved a proposal to increase the on-chain tax rate from 0.5% to 1.5%, with the upgrade going live on August 2, 2026.

This 300% hike in LUNC's burn rate is expected to have significant implications for the token's price and overall market performance.

The new 1.5% fee will be imposed only when depositing or withdrawing LUNC directly between owned crypto currency wallets, with a breakdown of the newly-imposed tax being roughly: 1.2% burned in the process, 0.15% sent to the Community Pool, and 0.15% going to the Oracle Pool.

Analyst Gopal notes that LUNC's price setup resembles a local double bottom on the 5-minute charts, with the token bound between $0.0000496 to $0.0000498.

The bigger picture suggests stagnant trading volumes and geopolitical uncertainty, which could impact LUNC's price performance in the coming days.