In a significant decision, the Terra Classic (LUNC) community has made the decision to halt all minting activities associated with Terra Classic USD, the algorithmic stablecoin that played a central role in the $45 billion crisis of the Terra ecosystem.
Terra Classic Community Votes to Stop Mining Terra Classic USD (USTC)
The Terra platform initially allowed users to freely exchange UST and its companion cryptocurrency, LUNA.
However, when the UST experienced a deviation from its fixed value in May 2022, the mechanism was severely disrupted.
This caused trillions of LUNA tokens to be minted and the value of UST to drop below one cent.
The proposal to end this exchange mechanism in order to protect outside investors who are actively burning USTC received a high approval rating of 59%.
The Terra Classic community envisions a future in which the cryptocurrency can regain its original peg of $1 by initiating the burning of trillions of tokens produced during the crash.
As reported by LUNC Metrics, as of now, the community has successfully burned approximately 75 billion tokens, accounting for roughly 1% of the approximately 6 trillion tokens currently in circulation. Currently USTC is worth $0.012.
*This is not investment advice.
