Good read from reddit: What to expect after the burn tax The

Question

Good read from reddit: What to expect after the burn tax The

1.2% burn tax is set to go live very soon but you all should know that this is not a single solution to the issue here. As of now, no major CEXs will be supporting the off-chain burn tax and there’s a possibility that they never will. That being said, we can only calculate the total burned from from on-chain transactions which is ~2B/day at current volumes and will decrease as the total supply goes down. At this rate, it could take well over 10 years to reach the 10B total supply goal. If the major CEXs implement the off-chain burn, it can be done in as little as 5 years.

However, since we cannot rely on CEXs to do charity work for us, it’s important that you understand the future upgrades to the network v23 and v24 set to release in December 2022 and Spring/Summer 2023 respectfully.

“What will happen in v23?”
-reopening IBC channels
-enable LUNC->USTC swap burns
-enable TerraC derivatives/denominations
-and more

“What will happen in v24?”
-replicate the TerraC code to exactly match Terra 2.0 thus making integration on the network smoother (ie. soft fork)
-and more

“So the 1.2% burn tax is not permanent?”
We have to see how it goes. It could potentially kill activity on the network. This is more of an experiment. The data that comes out of this experiment is more valuable than the actual burn tax. Chances are we might have another proposal to lower the tax rate.

“How is USTC going to be repegged?”
It’s not a one set solution to a big problem. In fact, it’s important to we tackle the problem from multiple angles. As of now, we have multiple IRL quantitative analysts working on their proposals to repeg USTC. Some of them, are outside sources with their own teams. A few names are 4lex, faffy, A.E., maxb, liveco and Duncan.

“How can we prevent another crash?”
Essentially, security measures will be put in place to prevent abuse of the swap mechanism which ultimately led to the collapse. So a limit in swaps basically.

“How is the swap burn going to work?”
The swaps will burn all LUNC in LUNC->USTC in a single transaction. Thus removing that LUNC and moving that capital from LUNC into USTC. This will be the most effective way in burning down the LUNC supply. The 10B goal can be achieved within 2 years with this method if the conditions are met.

“What utilities are operating on TerraC?”
Currently, there are 11-15 of the 30+ utilities operating on the classic network according to TFLs website at terra(dot)money/ecosystem. Outside of TFL, there are 50+ projects looking to integrate according to Vegas. Don’t forget, the reason why LUNA did so well before the crash was because of its native “stablecoin”, cheapest layer-1 blockchain, integrated swap mechanism, and proof of stake. Those 4 utilities alone made it so great.