Terraport Launch Date Confirmed, LUNC Prioritizes Utility Over Tax Burn Rise

The community’s focus on utility was recently evidenced in the rejection of a proposal looking to increase tax burn rate to 0.8%.

TerraCVita, the group behind the DeFi ecosystem Terraport, has confirmed that the project will launch on March 31. The development group’s remarks are in sync with the information detailed in the Terraport roadmap released last week.

TerraCVita’s latest comments on the Terraport launch come from recent developments surrounding Proposal 11397. The proposal, which sought to increase the tax burn rate from 0.2% to 0.8%, was recently rejected by the Terra Classic community.

On the 31st March @_Terraport_ launches.
Rejection of this proposal means @_Terraport_ #DEX can compete with other DEX's commission rates.
♥️
Do $LUNC proud and get as much volume in @_Terraport_ as we can. This could be massive for #LUNC and burn billions.#Finance #crypto https://t.co/6iXE5DLqbH

— TerraCVita (@TerracVita) March 20, 2023

Speaking on the rejection, TerraCVita noted that Terraport could rival other decentralized exchanges in terms of commission rates due to the rejection of the proposal. An increased tax burn rate would have discouraged investors from leveraging the Terraport DEX, reducing trade volume.

The group further solicited support from community members to help boost Terraport’s volume, as this would translate to bigger burns, potentially involving billions of LUNC. Rex “Rexyz” Harrison noted last month that the ultimate goal of Terraport is to attract investments into Terra Classic and concurrently expedite burns.

Recall that the community voted to reduce the burn tax rate from the previously-enacted 1.2% to 0.2% last October after witnessing its detrimental effects on Terra Classic’s volume. A proposal to temporarily increase it to 1.2% was introduced last November, but the community rejected it. The community has once again rejected this recent one.

Terraport’s Goal and the Need for Utility

TerraCVita’s remarks on the development came in response to Rex’s comments. He stated that the votes have conveyed a resolute message that the Terra Classic community prioritizes “a stable political environment.”

Rex emphasized that the introduction of utility and the building of projects, such as Terraport, that support token burns are the most effective ways of rejuvenating LUNC. Rex has always insisted that the community might need to sacrifice the burn tax to attract utility, as a heightened burn tax can drive away investors from projects on LUNC, including Terraport.

With the burn tax increase proposal 11397 rejected and not even making quorum this sends an overwhelming message that #TerraClassic supports a stable political environment where the preferred approach to bringing value to #LUNC is building and philanthropic / utility burning.❤️ pic.twitter.com/QMxvb63ECL

— Rexyz (@RexYellerBelly) March 20, 2023

Rex further said, “The Dex will charge fees circa 0.5% (Inc burn tax where applicable) of that over 44% will burn LUNC the majority of the rest going to liquidity pools, staking and burning Terra.”

Recently, TerraCVita revealed that they were currently in talks with LUNC developers Tobias “Zaradar” Andersen and Edward Kim, as they explore ways through which Terraport can be leveraged to help bring Kim’s Machine Learning project to fruition and expedite token burns.