Community Votes to Cease USTC Issuance: Terra Classic Initiative
Terra Classic community has voted to halt the minting of USTC, the algorithmic stablecoin that contributed to the collapse of the Terra ecosystem last year.
Through a recent vote, the LUNA community decided to cease the issuance and re-issuance of Terra Classic USD (USTC), following the controversial collapse of Do Kwon's empire over a year ago.
Previously known as UST, USTC allowed users to freely exchange between this stablecoin and LUNA. However, since UST heavily depegged in May 2022, this mechanism failed as billions of LUNA tokens were minted, undermining the value of UST.
Today, the community seeks to end this exchange mechanism to protect its members and investors in their efforts to revive USTC. The proposal finally closed on September 21, garnering a 59% approval rate.
The Terra Classic community hopes this proposal will help USTC regain its $1 peg by burning billions of tokens minted during the collapse. So far, the community has only burned 75 billion tokens, about 1% of the nearly 6 trillion tokens in circulation, according to LUNC Metrics. Currently, USTC is valued at $0.0126 USD.
Price fluctuations of USTC on the 1D timeframe, CoinMarketCap screenshot taken at 09:00 AM on September 25, 2023.
Additionally, Do Kwon, co-founder of Terraform Labs currently imprisoned in Montenegro, intends to revive the project under a new guise known as Terra 2.0. Meanwhile, the Terra Classic community remains loyal to preserving the original blockchain.
