Terra ClassicUSD (USTC) Community Approves Proposal to Halt Minting and Reminting, Aims to Restore Stability and Peg to $1
In a significant move to restore stability and re-establish Terra ClassicUSD (USTC) at its intended peg of $1, the Terra Classic community has approved Proposal 11784. This proposal, which had faced previous obstacles due to software upgrades, has gained strong support and mandates the cessation of all minting and reminting of USTC without explicit approval from the Terra Classic community. This decision comes after a tumultuous period that followed the collapse of Terra in May 2022.
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The proposal received overwhelming support from the Terra Classic community, with a resounding ‘YES’ vote securing 55.32% of the ballots cast. However, it’s worth noting that 37.75% of votes favoured maintaining the status quo with a ‘NO’ decision.
Terra Classic Community Takes Decisive Action to Secure USTC Stability Amid Recent Challenges
The Terra Classic community has been actively working to reduce the circulating supply of USTC through token burns as part of their mission to re-peg USTC to the $1 mark. Minting and reminting had been seen as counterproductive to this goal, prompting the need for Proposal 11784.
With the decision to halt reminting, the community aims to protect the interests of its members and external investors. Additionally, this move opens doors for institutional players, such as Binance, to join the USTC burning efforts. The community had previously approved a proposal to involve Binance in USTC burning, allocating 50% of its USTC trading fees to the cause. This strategy mirrors the successful approach taken with LUNA.
Notably, the community recently greenlit the burning of 800 million USTC tokens. These tokens were originally part of the 1 billion USTC sent to Ozone Protocol by Do Kwon in March.
Despite previous efforts, the challenge of reminting persisted, with over 225,000 USTC tokens reminted on Sept. 17. However, the approval of Proposal 11784 is expected to end this unwanted trend.
In pursuit of restoring USTC stability and its peg to $1, the USTC Quant Team is actively exploring avenues for collaboration. This includes discussions with centralized exchanges and potential partners to explore a Real World Asset (RWA) model for the stablecoin.
The Terra Classic community’s dedication to rectifying the challenges faced by USTC demonstrates its commitment to the stability and growth of the token, which remains a cornerstone of the Terra Classic ecosystem.
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