• The Terra Luna Classic community is now looking forward to the Tax2Gas implementation.
• This innovation will automate some of the essential features including converting payable taxes to gas fees.

As per Genuine Lab’s recent announcement, the Terra Luna Classic community is eagerly anticipating the upcoming Tax2Gas implementation. Notably, Genuine Labs, the core L1 developer gave the update following the approval of proposal 12115, titled “Genuine Labs Tax2Gas Implementation,” which passed last month. The upgrade is slated for completion by the end of July.

As previously detailed by Crypto News Flash, proposal 12115 for Tax2Gas was adopted by members of the community to enhance users’ experience on the Terra Classic network. They also anticipate a burn tax increase.

Technical Advancements and Testing

At an earlier occasion, Genuine Labs had requested for five weeks to develop and carry out basic testing and development of the research. Meanwhile, an estimated $25,000 in LUNC budget has been earmarked for the project.

According to its biweekly update given on June 9, Genuine Labs stated that its team has been working on the Tax2Gas module. Some notable changes effected relate to the WebAssembly (wasm) handler plugin, and upgrading the handler itself. In order to track the development of the project users can do so on the Terra Classic GitHub.

Notably, 22 denominations of Terra Classic will be required as gas price values for the new module and define the logic for the AnteHandler and PostHandler. Interestingly, going forward, taxes will be converted to gas while fees will only be spent upon successful transactions. With this, contract developers that hitherto calculated their burn tax manually will no longer do so.

As per burn, the cumulative LUNC tokens burned by the Terra Luna Classic community have soared past the 113.71 billion mark as noted in a previous Crypto News Flash report.

In the meantime, the next task for the team will include unit tests for the new module, End-to-End (E2E) tests, manual tests, and testnet implementation.

Market Implications and Speculations on Terra Luna Classic

With the new Tax2Gas implementation, there are strong speculations that the Terra Classic chain and the price of LUNC will receive a remarkable boost. 

As per predictions, some in the community hold that LUNC could rise to $1 after the upgrade. This optimism is based on its listing on cryptocurrency exchanges and the return of dApps to the chain. Furthermore, LUNC burn is likely to receive a significant boost.

According to market data, LUNC price is up 2.46% to $0.0000718 within the past 24 hours. Meanwhile, as per trading volume, a 43% decline has been recorded to show that positive sentiment is yet to seep deep.

Some analysts attribute the performance to the German government’s Bitcoin selloff.

With eager expectations from the Terra Luna community, it is hoped that upon completion of the Tax2Gas upgrade, there will be a positive impact on LUNC’s price and overall market dynamics. Given the simplification processes for developers, the seamless performance will also improve the value of LUNC.