Bitrue recently announced supporting the 1.2% tax burn proposal of the LUNC (Terra Classic) community. The network expects the tax burn to be conducted on September 20 at the block height of 9,475,200.
The other prerequisite for the tax proposal to go live is the wallet upgrade. Terra Classic is expected to wrap up the update on September 19 at 10:000 UTC. Once this is done, the network will instantly restrict deposits and withdrawals.
The resume time for the transactions has not been announced till now. As for the tax proposal, it will be imposed on every currency denomination available on-chain, such as:-
- ANC
- LUNC
- MINE
- C2X
- USTC
- STT
- ORION
After the tax burn proposal is implemented and starts operating, it will affect the deposits and withdrawals of multiple tokens, including LUNC. Here is a quick overview of how it will affect deposits and withdrawals:-
Deposits: The LUNC (Terra Classic) network will levy the tax on every transaction before it reaches the Bitrue platform. Users will receive the balance on their Bitrue account after the network imposes the 1.2% tax deduction.
Withdrawals: Bitrue users will get the withdrawal amount after Bitrue deducts the withdrawal fees. In addition, the network will also charge a 1.2% tax deduction before concluding the transaction.
As per the official Terra Classic document, the update will follow the rules mentioned in proposal 4159, distribution of v22, and proposal 3568, 1.2% tax burn. The network will charge and burn taxes for on-chain tasks, like sending between smart contracts and wallets that interact with chains.
However, this will not enforce taxes on off-chain activity, such as trading centralized exchanges. Given the complication of the proposal, users are advised to go through the documents before continuing with their trading.
