The community of Terra Classic has decided to halt all minting and reminting activities related to TerraUSD Classic (USTC) to restore a stable connection between USTC and the United States dollar.
In a recent vote, 59% of the community supported the cessation of USTC minting, while around 40% were against this decision. This step is intended to protect the interests of both community members and external investors by decreasing the USTC supply, aiding in the re-establishment of its peg to the U.S. dollar. In May 2022, USTC lost its peg to the U.S. dollar, leading to a disastrous fall in Terra, with Luna Classic (LUNC) tightly linked to USTC.
LUNC’s value drastically dropped by almost 100%, triggering a wider decline in the cryptocurrency markets and causing approximately $40 billion loss in total market capitalization.
The proposal noted that it would encourage major cryptocurrency exchanges to burn USTC.
“Most crucially, this proposal allows institutions like Binance to commence burning USTC, given the cessation of minting and reminting,” the statement highlighted. This decision follows reports of the Terra Classic community’s concerns regarding an increase in spam due to the drop in LUNC prices.
On September 10, Cointelegraph reported that the community was voting on various proposals, one of which involved increasing the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The voting concluded on September 16, with a significant majority, 93.22%, supporting the raise in the minimum deposit requirement.
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