In a crucial move towards reviving the USTC stablecoin, the Terra Classic community is currently embroiled in a heated debate over a proposal submitted by community member Afzal. The proposal, if approved, would entail burning a staggering 640 million USTC tokens, taking them out of circulation and potentially restoring the stablecoin’s value. The remaining 20% of the total supply, comprising 160 million USTC tokens, would be directed to the Terra Classic community spend pool.
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Terra Community proposes to burn 80% of 800 million USTC tokens
The proposal has triggered diverse reactions among community members. Supporters of the initiative argue that burning a significant portion of USTC tokens would help stabilize the stablecoin’s value, while detractors contend that the full 800 million USTC tokens should be burned to prevent any dilution of the supply. With the proposal currently up for a community vote, the outcome remains uncertain, but the potential impact on the future of USTC is immense.
$LUNC community, an important proposal has come to light!
80% of the 800 million $USTC burned and 20% of the 800 million $USTC to the community pool (prop 11671)
This is the best middle ground that benefits both the community and the developers.
I'm voting yes! pic.twitter.com/njCWmTh3xm
— Levi (@LeviRietveld) August 3, 2023
USTC Quant Team to restore the stablecoin’s value
The recent struggles of the USTC stablecoin have prompted the USTC Quant Team to prioritize the repegging process. In a positive development, the team has established direct communication channels with Binance, indicating their commitment to resolving the issue. Additionally, the USTC Quant Team is actively exploring other initiatives to restore the stablecoin’s value, with repegging being a top priority for the Terra Classic community.
USTC’s ability to regain its peg to the US dollar holds significant implications for the entire Terra ecosystem. A successful repegging would provide a much-needed boost to the stablecoin’s credibility and utility, solidifying its role within the Terra network.
As the Terra Classic community awaits the outcome of the proposal, optimism is growing among stakeholders that the burning of 640 million USTC tokens could be a crucial step towards the stablecoin’s recovery. By reducing the supply and potentially stabilizing its value, the USTC token may regain confidence among investors and users alike.
The future of USTC remains uncertain, and only time will tell whether the proposal will be successful in restoring the stablecoin’s value. However, the recent developments, including the proposal itself and the USTC Quant Team’s efforts towards repegging, offer promising signs of hope for USTC’s potential recovery.
As the voting process progresses and the community deliberates on the critical proposal, the entire cryptocurrency community watches closely, acknowledging the importance of this decision for the future of USTC and its potential role within the broader digital asset landscape.
[…] a significant stride towards stabilizing the TerraClassicUSD (USTC) stablecoin, the Terra Classic (LUNC) community has successfully passed two pivotal proposals. These […]