Terra Luna Classic Passes Tax Handling Proposal with Reverse Charge Mechanism
The post Terra Luna Classic Passes Tax Handling Proposal with Reverse Charge Mechanism appeared on BitcoinEthereumNews.com.
The new Reverse Charge tax mechanism on LUNC simplifies tax deductions and prevents double taxation, benefiting developers and users alike. This update aligns with community-led initiatives to stabilize the LUNC ecosystem, including substantial token burns and infrastructure updates. A “Reverse Charge” tax mechanism has been adopted by the Terra Luna Classic community to streamline how transaction taxes are handled on its blockchain. This update aligns with the excitement among community members in early November, as CNF reported that Terra Classic (LUNC) recently saw a bullish breakout from an ascending triangle pattern. 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. In a recent tweet by Mr. Diamondhandz1, the official account and host of The Diamond Hour, the Luncliveorg validator voted YES to the $LUNC proposal 12143, which simplifies tax handling and replaces the Tax2Gas approach. The @Luncliveorg validator has voted YES to $LUNC proposal #12143 which would simplify tax handling and replace the Tax2Gas approach. We look forward to seeing the new approach tested and implemented by @ColeStrathclyde. Time to bring the builders back to #LUNC. 🛠️💎🤲🏻 #Crypto pic.twitter.com/EY5ytRQA0N — Mr. Diamondhandz1💎 (@MrDiamondhandz1) November 2, 2024 This update also reduces complexity for developers, who no longer need to implement intricate tax-handling systems for their decentralized applications (dApps). Additionally, the system is backward-compatible, allowing dApps the flexibility to retain the original sender-side tax option if preferred. Eliminating Double Taxation and Reducing Developer Burden 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.…
Filed under: News - @ November 4, 2024 1:26 am