The Terra Classic community has decided to stop minting USTCs
To restore its U.S. dollar peg, the community strongly supports burning tokens rather than continuing to manufacture TerraUSD Classic (USTC).
The Terra Classic community has agreed to halt all minting and reminting actions linked to TerraUSD Classic (USTC) to restore a stable peg between USTC and the US dollar.
Recent proposals have seen 59% of the community vote in favor of ending USTC minting, with 40% against.
Reducing the available supply of USTC will help achieve the desired repeg to the U.S. dollar and protect the local population as well as outside investors.
USTC stopped being tied to the dollar in May of 2022. Luna Classic (LUNC) is intrinsically linked to USTC, and as a result, it precipitated a catastrophic collapse on Terra.
As a consequence of LUNC’s precipitous drop in value—nearly 100%—the cryptocurrency markets as a whole experienced a collapse, wiping almost $40 billion in market capitalization.
According to the plan, this would cause major cryptocurrency exchanges to dump USTC. The plan “most importantly” allows “institutions like Binance to start burning USTC” since that “minting and reminting” is no longer taking place, as said in the announcement.
According to recent reports, the Terra Classic community is worried about a rise in spam as a result of the recent drop in LUNC prices.
The minimum deposit amount is being debated and voted on by the community, and as of September 10th, Cointelegraph stated that it might be increased from 1,000,000 LUNC to a whopping 5,000,000,000 LUNC. As of the 16th of September, 93.22 percent of voters approved a minimum deposit increase.