Community Decision: The End of USTC Minting
The Terra Classic community has spoken loud and clear, voting with a decisive 59% majority to put an end to all minting and reminting activities associated with TerraUSD Classic (USTC). The push for this groundbreaking decision stems from the desire to reestablish a stable peg between USTC and the reliable U.S. dollar.
Aiming for Stability: The Plan to Reduce Supply
By reducing the supply of USTC, the Terra Classic community hopes to protect both its members and external investors. This strategy is essentially about keeping the ship upright after the turbulent times the community endured following USTC’s depegging in May 2022, which sent shockwaves throughout the crypto world.
A Brief Recap: The Collapse of USTC
Let’s take a quick trip down memory lane. When USTC depegged from the dollar, it wasn’t just a minor blip; it was like watching a car crash in slow motion. The fallout resulted in Luna Classic (LUNC) losing almost 100% of its value, triggering a broader decline across the crypto markets that led to a staggering $40 billion dip in market capitalization.
Future Actions: What’s Next for USTC?
The proposal not only indicates a shift in approach but also suggests that major exchanges may start burning USTC to tighten the supply further. As pointed out, “Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over.” Talk about a drastic measure—who knew removing coins could be so liberating?
Addressing Community Concerns: More Proposals in the Pipeline
In light of recent events, concerns over spam activities have bubbled up within the community. On Sept. 10, it was reported that the Terra Classic community was considering various proposals, including increasing the minimum deposit from 1 million LUNC to a whopping 5 million LUNC. Unsurprisingly, the results came out overwhelmingly in favor with 93.22%. We all want to make it harder for spammers, right?
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