Luna Classic(LUNC) Proposal for the 1.2% Tax Parameter Change

Summary
This proposal initiates the tax for all on-chain transactions as first described in proposal 3568 (for the 1.2% burn) and proposal 4159 (distribution of v22). Taxes will be charged and burned for on-chain activity such as sending between wallets and smart contracts that interact with the chain. This parameter change cannot enforce taxes on off-chain activity (like trading on CEXs); however, depending on the mechanisms that these trading exchanges use, such as moving from hot to cold wallets, that activity can and will be taxed and burned. There are many implications to this tax both technically and economically. We would like the community to be fully aware of these pros/cons before deciding to move forward.

Technical Description
In accordance with Terra governance, this proposal is being created to change the tax parameter from its current value of 0 to 0.012 (1.2%). The tax would be applied to all currency denominations currently available on chain (including Luna and UST).

The proposal will set the treasury "rate min" and "rate max" parameters to 0.012 to set the effective tax rate to 1.2%. The tax will be clamped to exactly this number. The cap on the total tax allowed in usdr units will be set to 7667000000000 or approximately $10 million US dollars. There is no such thing as an unlimited cap, and so this number would cover the necessary taxes for the entire market cap of Lunc transacted in a single transaction.

Furthermore, the "change rate max" will be set to 0.0, preventing the tax rate from changing over epochs (approximately a week) of the blockchain. The reward policy "rate min" and "rate max" will be set to 1.0, with a "change rate max" set to 0.0. The reward policy specifies how much of this should be burned, and how much should be distributed. 1.0 or 100% indicates that all of the newly minted Luna should immediately be burned and not distributed.

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