Terra Classic Community Navigates Controversy in Quest to Burn 800 Million USTC
In a dramatic turn of events, the Terra Classic community remains resolute in its pursuit to burn 800 million USTC from the Risk Harbor multisig wallet. After a setback with a previous proposal, a new contender, “Burn of 800m USTC Funds” (Proposal 11927), has entered the governance voting arena, aiming to address concerns over potential legal ramifications.
🚨 I have voted YES on #LUNC proposal 11927
👇🏽Please read WHY?:👇🏽
I voted YES on this LUNC proposal to burn 800 million USTC funds from the Luna Classic treasury.
This alternative proposal suggests creating a simplified smart contract to transfer the funds to Anxu and then… pic.twitter.com/InKiI2OEaf
— 🌠Lunanauts🌠 LUNC Validator (@Lunanauts_Lunc) December 20, 2023
The Saga Unfolds
The saga began with Proposal 11913, intending to burn the disputed USTC through a Terrad client update. However, validator Lunanauts raised legal concerns, leading to the demise of the proposal. Undeterred, the community devised a Plan B – the current Proposal 11927. This proposal suggests employing a custom contract to transfer the 800 million USTC from the Risk Harbor multisig wallet to a designated burn address, sidestepping validators’ involvement to minimize legal exposure.
Burning Urgency
The urgency to burn the USTC stems from Risk Harbor’s admission of losing access to the wallet’s private keys. With fund recovery ruled out, blacklisting the wallet becomes a dead end. Burning the USTC emerges as the sole viable path forward for the community to shed this lingering burden. This approach, proposed by Lunanauts, aims to reduce the overall USTC supply, potentially boosting its price, instilling investor confidence, and expediting the recovery of the Terra Classic Ecosystem.
Current Proposal Status
As of now, Proposal 11927 enjoys overwhelming support, with 73.2% “Yes” votes from validators. Only 9.76% of validators have voted “No,” and 15.24% have chosen to abstain. The voting window is set to close on December 27. If over 50% of validators endorse the proposal, the 800 million USTC will be destroyed. However, failure to pass will revert to the previously considered blacklist proposal, 11832.
It’s noteworthy that only 4.93% of the expected total votes have been cast, indicating that the proposal has a considerable journey ahead before potential passage.
Market Reaction
Amid the voting drama, the market reaction has been lukewarm. LUNC price dipped 3.42% in the past 24 hours, while USTC showed slightly better resilience with a 2.71% decline. LUNC is currently trading at $0.0001557, and USTC at $0.03358. Both cryptocurrencies have experienced significant drops in trading volume, with LUNC down 58.63% to $96.5 million and USTC dropping 53.86% to $30.7 million.
As the Terra Classic community grapples with this pivotal decision, the outcome of Proposal 11927 holds significant implications not only for the USTC supply but also for the broader confidence in the ecosystem’s recovery. The market remains watchful, anticipating the resolution of this chapter in the Terra Classic saga.
Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
