All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- OrbitLabs has submitted a proposal to the Terra Classic community to review and test the recently passed “Reverse Charge” tax mechanism.
- Once approved, two weeks would be used for these proposed tasks, and the budget allocation is $2500.
The latest report coming from the Terra Classic (LUNC) community is that OrbitLabs has proposed to subject the recently approved “Reverse-Charge” tax mechanism (Proposal 12143) to a comprehensive review while assisting with the testing of the “fix interchain” introduced in SDK 0.47. According to our research, this is not the first time OrbitLabs has submitted such a proposal.
Previously, the firm assisted StrathCole in reviewing code and testing an earlier Tax2Gas implementation. Through this technical review, it was found that the initiative was complicated in its implementation. This implied that collaboration from multiple parties was required.
Taking a critical look at the newly submitted proposal, OrbitLabs intends to use two weeks to complete the whole process. The first week is expected to be used for the in-depth review of the approved implementation. After this, the subsequent week would be used to fix and update existing tests. Meanwhile, the budget submitted for this project is $2,500. However, a spending proposal would be made with the LUNC amount equivalent to the dollar at the time of completion.
An excerpt of the proposal:
By reviewing and assisting with the testing of the approved simplified tax handling mechanism, OrbitLabs aims to help Terra Classic implement this governance-approved change efficiently and securely. We believe our approach balances the need for proper implementation with careful risk management and community involvement. We welcome feedback and discussion from the Terra Classic community on this proposal.
The “Reverse-Charge” Tax mechanism (Proposal 12143) Approved by Terra Classic
Proposal 12143 seeks to ensure that a “Reverse charge” mechanism is deployed on the Terra Classic to replace the tax2gas approach, as we earlier reported. Fascinatingly, its ability to automatically deduct tax from the amount sent before reaching the recipient’s wallet simplifies tax handling. It also prevents the need for the sender to pay the tax as an additional fee.
According to our research, the implementation will introduce several key modifications, including backward compatibility, contract interaction, elimination of double taxation, wallet compatibility, whitelisting, and Tax2Gas Obsolescence.
A report also establishes that the system was fully developed and deployed on the secondary testnet as of the last week of October. Additionally, crucial tests were conducted on several transaction types, such as NFT collection deployment, sending LUNC, and buying NFTs via UI. The tax deduction automation and the new tax query methods also worked as expected.
The remaining tasks to be completed, according to reports, are the preparation of the release for mainnet deployment, further use case testing on the testnet, fixing interchain tests introduced in SDK 0.47, review by another developer or team, and official deployment on the primary rebel-2 testnet.
At press time, Terra Classic (LUNC) was trading at $0.000091 after declining by 0.82% in the last 24 hours and surging by 6% in the last 30 days. Meanwhile, CNF reports that popular analyst Javon Marks is bullish on the asset.
