Why is tax burning important for the Terra Luna Classic community?

3 answers

• Feb 18, 2022 · 3 years ago
  Tax burning is a crucial aspect for the Terra Luna Classic community. By burning a portion of the transaction fees, it reduces the total supply of the token, which can potentially increase its value. This mechanism helps to create scarcity and incentivizes holders to keep their tokens rather than selling them. Additionally, tax burning can also contribute to the stability of the token's price by reducing the circulating supply and preventing excessive inflation.
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• Feb 18, 2022 · 3 years ago
  Tax burning is like a magic trick that benefits the Terra Luna Classic community. When a portion of the transaction fees is burned, it reduces the total supply of the token, making each token more valuable. This can attract more investors and traders to the community, driving up demand and potentially increasing the token's price. So, tax burning is not just important, it's essential for the growth and success of the Terra Luna Classic community.
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• Feb 18, 2022 · 3 years ago
  Tax burning plays a vital role in the Terra Luna Classic community. It is a mechanism implemented by projects like BYDFi to reward token holders and create a deflationary effect. When users engage in transactions, a percentage of the transaction fees is burned, which reduces the circulating supply of the token. This can help to stabilize the token's price and incentivize long-term holding. Tax burning also showcases the commitment of the project to the community, as it demonstrates a dedication to increasing the value of the token over time.
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