Terra Classic Community Proposes Bold Plan: Binance to Burn 50% of USTC Trading Fees

The Terra Classic community is currently voting on a proposal to make Binance, the world’s largest centralized cryptocurrency exchange, burn 50% of gas fees yielded from USTC trading pairs. For reference sake, it should be noted that USTC is an algorithmic stablecoin currently running on the Terra Classic ecosystem.

After the Terra doom of May 2022, USTC experienced a significant and almost irrecoverable de-pegging. So, the major aim of this initiative is part of an ambitious plan to stabilize the USTC stablecoin and return it to its normal state.

There have been many proposals, in the past, passed in a bid to return USTC to $1. This new proposal is therefore not the first attempt. The proposal for a USTC repeg team was passed recently and another proposal was also passed in August. It was passed to burn 800 million USTC tokens to benefit the anticipated LUNC recovery and its repeg.

Proposal #11785 To Boost LUNC Recovery

Proposal #11785, the most recent appeal, seeks to prolong Binance’s existing technique of burning part of monthly trading fees for Terra Classic (LUNC) pairs. These pairs have a combined trading volume of roughly $5 million in the past 24 hours and represent a significant rise in burns for USTC.

The motive behind this proposal is due to Binance’s involvement in the procedure. Additionally, it might encourage other Exchanges to embrace similar practices of LUNC burn.

As of press time, 43.34% of validators voted. 43.08% out of 43.34% voted in favor of the proposal, which makes up 19 of the validators. 4 of the validators, making up 9.59%, voted against it, and 1, which is 0.14% voted no with a veto. 47.18%, which are 6 of the validators, have abstained from voting. 92 validators are yet to vote, and voting ends at 12:43:49 on September 21.

The proposal needs to hit 50% to exceed the pass entry. All Nodes Staking, the validator with the most voting power, has chosen to abstain from voting.

Despite the active efforts of prominent figures like JESUSisLORD (@ForTheCross_CH) advocating for it on X, the participation in voting remains relatively low. The community is eager to persuade Binance to implement a monthly burning mechanism for USTC, in sync with the monthly burning of 50% of LUNC.

I voted YES on #LUNC governance proposal #11785 to request Binance to burn 50% of their USTC fees like they burn 50% of their LUNC fees. I have supported Binance burning their USTC fees for some time https://t.co/qHTEQxDJJe, and it will be up to Binance to consider our request if… pic.twitter.com/3whqbzQIwi
— JESUSisLORD (@ForTheCross_CH) September 14, 2023

Should Binance entertain this proposal, it could potentially lead to a collaboration that aligns with the Terra Luna Classic community’s objective of stabilizing USTC’s value to $1. It’s worth noting that Binance plays a pivotal role in the burning of LUNC tokens, having already incinerated nearly 38 billion LUNC tokens.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

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