TL;DR
- OrbitLabs proposes a review of Terra Classic’s new “Reverse Charge” tax system.
- The system would shift the tax burden from the issuer to the receiver, simplifying transactions.
- OrbitLabs is seeking community approval to begin the review process, with a budget of $2,500 USD.
OrbitLabs has proposed a comprehensive review of the “Reverse Charge” tax system recently approved by the Terra Classic community.
This new initiative, which replaces the current Tax2Gas system, aims to simplify the tax deduction process in blockchain transactions.
Unlike the traditional model, where the sender of the transaction is responsible for calculating and adding taxes, the “Reverse Charge” system automatically deducts taxes from the receiver, making transactions easier and reducing the administrative burden.
The system was introduced by developers StrathCole and HCC, and has been approved by Terra Classic governance.
However, before final implementation, a full review is required to ensure its safety and effectiveness.
According to the Galaxy Station report published on November 8, 2024, OrbitLabs, which has previously worked on reviewing other tax system implementations, proposes to conduct an audit of the code, validate its functionality, and ensure that it is aligned with Terra Classic‘s tax system simplification goals.
The proposed review process has a cost of $2,500 USD, to be paid in LUNC upon completion of the work.
This quote covers a comprehensive review that will take place over two weeks.
The first week will focus on evaluating the security and functionality of the system, while the second week will be dedicated to updating and testing compatibility systems, especially with the Terra Classic SDK 0.47 release.
Early test results on the Terra Classic rebel-2 network have been promising.
In one of the tests, a transaction of 1,000,000 LUNC was sent, and the receiver received 995,000 LUNC after tax deduction, without the sender having to bear any additional costs.
This suggests that the “Reverse Charge” system could work properly and be compatible with existing systems.
Review and testing of the Terra system
If the proposal is approved by the Terra Classic community, OrbitLabs will begin a technical review phase in the coming days.
This process is crucial to ensure that the Reverse Charge tax system is secure, effective, and compatible with other platforms within the Terra Classic ecosystem.
The proposal aims to improve the user experience, while facilitating tax management for blockchain participants.
The implementation of this system not only focuses on the automation of taxes, but also on ensuring that transactions can be carried out more smoothly and without additional complications for users.
The approval of this review is a key step in continuing the evolution of Terra Classic and further optimizing its internal processes.
This approach aims to provide a simpler and more efficient solution for tax deductions on blockchain transactions, which could represent a significant advancement for the platform.
As the system is tested and validated, developers will be on the lookout for any necessary adjustments to ensure that users do not face any issues when interacting with the network.
Ultimately, these types of proposals underline Terra Classic’s commitment to constantly improving its tax mechanisms and overall user experience.
