The community strongly supports ending the minting and reminting of TerraUSD Classic (USTC) tokens. Instead, they want to burn tokens to bring back its U.S. dollar value.
The Terra Classic community has decided to stop making and remaking TerraUSD Classic (USTC) tokens. They did this to make sure that USTC’s value stays stable and equal to the U.S. dollar.
In a recent vote, about 59% of the community agreed to stop making USTC, while around 40% disagreed with this decision.
Terra Classic poll results. Source: Atom Scan
The community’s decision to stop making USTC tokens is meant to protect the interests of both the community and external investors. This move reduces the supply of USTC and helps bring it back to being equal to the U.S. dollar.
In May 2022, USTC lost its tie to the U.S. dollar, causing a big problem for Terra. Terra’s value went down a lot, and Luna Classic (LUNC) was closely linked to USTC. LUNC’s value dropped almost 100%, which also caused a broader drop in the crypto markets, resulting in a total loss of around $40 billion in market value.
The proposal mentioned that major crypto exchanges would start burning USTC. They said, “This proposal also lets institutions like Binance burn USTC because there won’t be any more making and remaking of it.”
This decision comes after concerns in the Terra Classic community about an increase in spam messages following the drop in LUNC prices.
The proposal ended on September 16, with 93.22% of people in favor of increasing the minimum deposit requirement amount.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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