A community member named Rexyz has cautioned the Terra Classic (LUNC) community regarding their engagement in USTC and LUNC trading positions following the blacklisting of an 800 million USTC wallet. Rexyz emphasized that the current circulating supply displayed on CoinMarketCap might not accurately reflect the liquidity of the algorithmic stablecoin.
USTC Wallet Blacklisting: The Concern
The Terra Classic community is contemplating actions to revitalize both LUNC and USTC, including periodic asset burnings. After months of discussions about the potential burning of tokens, the community recently passed a proposal to blacklist a wallet containing 800 million USTC tokens.
While the decision was divisive, proponents argued that blacklisting was the only viable option to encourage wallet owners to contribute to restoring the token’s peg.
Upon the proposal’s approval, implementing the plan to modify the code to reflect the changes was initiated on October 20, along with efforts to update USTC data on CoinMarketCap.
Notably, Rexyz’s warning starkly contrasts the assertions of Vegas, one of the leading proponents of the blacklisting move. While Vegas confirmed the implementation of the code for the blacklist and the update on CoinMarketCap, Rexyz’s caution alleged that the “blacklisting had not actually been implemented in the code” at the time of his post.
Doubling Down on USTC Repeg Efforts
USTC (formerly UST) briefly held the position of the pioneering algorithmic stablecoin until it lost its $1 peg last year, prompting LUNA to follow suit. The community remains resolute in altering this trajectory and has garnered support from prominent industry giants, including Binance.
Efforts to bolster the USTC repeg go beyond token burning. The core team overseeing the protocol recently passed Proposal 8813, authorizing the issuance of 1.6 million USTC to fund the Terra Classic grant program. Despite the consistent dedication to these initiatives, USTC remains down by 98% from its all-time high (ATH) of $1.05.