- 1 The Terra Classic community has voted to stop all USTC minting and re-minting activities.
- 2 In a recent community vote, the majority of members voted for ‘dis-counting USTC minting.’
The algorithmic stablecoin that brought down the Terra ecosystem last year, the USTC mint, will no longer be operated by the Terra Classic community. The community is working to revive USTC while it wishes to halt the aforementioned swap mechanism to save the community.
According to a recent proposal by the Terra Classic community, they are going to stop minting and re-minting the stablecoin, TerraClassicUSD (USTC). The community strongly backs stopping USTC minting and re-minting to restore the USTC peg to the dollar.
Terra Classic Community’s Strategy
With their step, the Terra Classic community will re-establish a stable peg between the USTC and the United States dollar. According to a recent proposal, the community has voted 59% in favor of discontinuing the minting of USTC. However, 40% of the community members have opposed this move.
This move aims to secure the interests of both the community and external investors. As it will reduce the supply of USTC and contribute to the goal of a repeg to the U.S. dollar.
It must be noted that in May 2022, USTC depegged from the U.S. dollar. Later on, it caused Terra to go through a catastrophic collapse, with Luna Classic (LUNC) closely tied to USTC. The value of LUNC dropped by almost 100%, setting off a broader drop in the crypto markets. It resulted in a loss of almost $40 Billion in total market capitalization.
The Proposal Highlights
According to the proposal, it would lead major crypto exchanges to burn USTC. Most importantly, this proposal opens the door for institutions to start burning USTC, knowing that the minting and reminting are over. It comes after reports that the Terra Classic community is concerned about an uptick in spam following a decline in LUNC prices.
According to CoinMarketCap (CMC), at press time, Terra Classic (LUNC) is trading at $0.000061 with a 24-hour trading volume of $30.44 Million. LUNC is up 2.63% in the last 24 hours, with a current market cap of $356.90 Million.
In the past 24 hours, LUNC traded in between the price range of $0.00006017 and $0.00006331. Notably, in the past 7 days, the LUNC price has shown upside movement with over a 5% price rise.
Additionally, TerraClassicUSD (USTC) is trading at $0.012515 with a 24-hour trading volume of $10.73 Million. It is also down 2.61% in the last 24 hours, with a current market cap of $122.49 Million. The recent 24-hour price range of USTC was between $0.01251 and $0.01312, according to CMC
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.