Terra Classic community elects to cease USTC minting
The community strongly backs stopping TerraUSD Classic (USTC) minting and reminting in favor of burning tokens to restore its U.S. dollar peg.
The Terra Classic community has voted to cease all minting and reminting activities related to TerraUSD Classic (USTC) to reestablish a stable peg between USTC and the United States dollar.
In a recent proposal, the community voted 59% in favor of discontinuing the minting of USTC, while approximately 40% opposed the change.
The move aims to safeguard the interests of both the community and external investors by reducing the supply of USTC, contributing to the goal of a repeg to the U.S. dollar.
In May 2022, USTC depegged from the U.S. dollar. Subsequently, it caused Terra to experience a catastrophic collapse, with Luna Classic (LUNC) closely tied to USTC.
LUNC’s value plummeted by nearly 100%, setting off a broader downturn in the crypto markets, resulting in the loss of approximately $40 billion in total market capitalization.
The proposal stated that it would lead major crypto exchanges to burn USTC.
“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the statement noted.
...