Can you explain the concept of tax burn in Terra Luna Classic?

3 answers

• Nov 28, 2021 · 3 years ago
  Tax burn in Terra Luna Classic refers to the process of permanently removing a portion of the transaction fees collected within the ecosystem. This mechanism helps to reduce the circulating supply of the native token and creates scarcity, which can potentially drive up its value. The burned tokens are sent to an address that is inaccessible, ensuring their permanent removal from circulation. This concept is aimed at incentivizing token holders and maintaining the long-term sustainability of the ecosystem.
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• Nov 28, 2021 · 3 years ago
  In simple terms, tax burn in Terra Luna Classic is like a self-imposed tax on transactions within the network. A portion of the transaction fees is burned, meaning it is taken out of circulation forever. This helps to control inflation and creates a deflationary pressure on the token's supply. As a result, the value of the token may increase over time. It's an interesting mechanism that aligns the interests of token holders with the growth and success of the ecosystem.
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• Nov 28, 2021 · 3 years ago
  Tax burn in Terra Luna Classic is an innovative mechanism designed to benefit token holders and ensure the stability of the ecosystem. When transactions occur within the network, a percentage of the transaction fees is burned, reducing the total supply of tokens in circulation. This deflationary mechanism can potentially lead to an increase in the token's value over time. It's a unique feature that sets Terra Luna Classic apart from other cryptocurrencies and contributes to its overall sustainability.
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