Terra Luna Classic (LUNC) News: Community Passes Tax Handling Proposal with Reverse Charge Mechanism
- Barbara StreisandOriginal
- 2024-11-04 12:20:28241browse
A “Reverse Charge” tax mechanism has been adopted by the Terra Luna Classic community to streamline how transaction taxes are handled on its blockchain.
The Terra Luna Classic community has adopted a “Reverse Charge” tax mechanism to streamline how transaction taxes are handled on its blockchain.
Under this new approach, taxes are automatically deducted from the transaction amount before reaching the recipient’s wallet, eliminating the need for senders to pay extra.
This update also reduces complexity for developers, who no longer need to implement intricate tax-handling systems for their decentralized applications (dApps).
Before this update, transactions involving smart contracts could be taxed both when receiving and sending funds, adding unnecessary costs and complications for developers and users.
A major advantage of the Reverse Charge mechanism is its ability to eliminate double taxation on smart contracts, which was a common issue in the previous system.
Now, taxes are only deducted when funds are sent from a contract to a wallet, making the process fairer and reducing the developer burden, especially for those migrating from other blockchain ecosystems.
This new tax mechanism complements ongoing community efforts to support Terra Luna Classic’s growth and stabilize the LUNC token.
Recent token burns have been integral to these efforts; in the latest burn cycle, Binance burned over 1 billion LUNC, contributing to a total of around 137 billion tokens removed from circulation.
The recent closure of the Shuttle Bridge further demonstrates the community’s commitment, with additional token burns anticipated to support ecosystem stability and the value of the cryptocurrency.
Through these initiatives, Terra Luna Classic continues to work toward creating a sustainable and user-friendly blockchain environment.
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