$LUNC Terra Classic's mainnet upgrade "v3.3.0" will be launched on 2024-12-17, officially upgrading the "fixed burn tax" established since September 2022 to a "dynamic tax" framework. The core content can be summarized in 3 points:
1.
On-chain tax rates can automatically adjust
The system will dynamically adjust the tax rate within the 0%–1.5% range according to real-time indicators such as on-chain transaction volume, number of active addresses, and Gas consumption over the past 24 hours, based on a preset algorithm; the larger the transaction volume, the closer the tax rate is to the lower limit, and vice versa.
This mechanism is written into the CosmWasm module, recalibrated every 10,080 blocks (about 7 days), and takes effect without the need for governance voting.
2.
Reverse Fee + Automatic Reduction
Taxes are deducted once from the "total amount sent" during the transaction broadcasting stage, and the receiving address directly receives the taxed amount, avoiding double taxation on both ends of the smart contract [^0^].
After synchronizing the node client upgrade, wallets, browsers, and contract layers no longer need to perform secondary calculations, appearing to users as "automatic tax deduction, seamless transactions".
3.
Tax distribution rebalancing
In the dynamic phase, 80% is automatically burned in real-time, 10% is injected into the community pool, and 10% flows to the Oracle reward pool; if the tax rate is algorithmically reduced to 0%, the entire tax segment pauses, and the income from burning and pools synchronously drops to zero, waiting for the next calibration cycle to resume [^1^].
In summary: v3.3.0 changes LUNC's burn tax from a "fixed 0.5%" to a "0%–1.5% range, automatically adjusting weekly", and combined with reverse fees and automatic reductions, allows the deflationary pace to change in real-time with on-chain activity.