Edward Kim Submits 296M LUNC Community Spend Proposal To Reimburse Lost Fees.
Kim wants the community to reimburse those who lost fees when the network experienced challenges after developers implemented the 1.2% tax fee.
Terra Classic core developer Edward Kim has introduced a proposal to reimburse users who lost fees due to errors resulting from the 1.2% tax burn parameter implementation.
The prominent Terra Classic developer unveiled the proposal in a tweet yesterday. As explained, these users from September 21 to 28 got taxed despite their transactions failing to go through due to problems encountered with the tax parameter change.
— Edward Kim (@edk208) January 22, 2023
According to Kim, StrathCole, another Terra Classic developer, has tracked down the affected addresses. Consequently, he proposes that the community take 296 million Terra Luna Classic (LUNC) from the community pool to reimburse the affected users.
The actual reimbursement amount is 295 million LUNC, with the extra 1 million LUNC earmarked for fees. Notably, the issue affected over 2,000 users, 9 of which lost over 5 million LUNC. Kim says the majority of these big losers are centralized crypto exchanges.
Meanwhile, per the proposal, hundreds of users who lost less than 10 LUNC will not receive reimbursements due to transaction costs.
Kim outlines that 2,214 wallets lost between 10 and 5 million LUNC and will receive reimbursements totaling 131 million LUNC algorithmically, while the Terra Grants Foundation will try to contact the top 9 addresses for manual refunds of about 165 million LUNC. In addition, the proposal asserts that the TGF will return any excess LUNC resulting from failure to identify wallet holders.
Per the proposal, TGF will release an account of the transactions at the end of the process.
Many have hailed the latest proposal as the proper thing to do and good use of the community pool funds. Such an action could bolster the community’s relationship with centralized exchanges affected by the network issues.
On the other hand, while supporting the logic behind the proposal, prominent community influencer Classy has questioned how developers plan to recapitalize the community pool before the next quarter.
Makes sense. If the $LUNC chain makes an error, the community should be reimbursed.
I do have a question! What are current methods put in place to replenish the community pool on-time for the next quarter?
— Classy 🔮 (@ClassyCrypto_) January 23, 2023
It bears mentioning that funding the community pool to fund development has been a pressing concern for the LUNC community. Recently, the community passed a proposal to increase network fees by 500% to fund the pool, as 50% of all fees collected are sent to the community pool at the end of every epoch.