Terra Classic: Proposals to Return and Burn 800M USTC Passed; LUNC and USTC to $1?

As two proposals to return and burn 800 million USTC just passed, the Terra Classic community is still committed to raising LUNC and TerraClassicUSD (USTC) to $1. To re-peg the TerraClassicUSD (USTC) stablecoin, the Terra Classic (LUNC) community has passed two significant proposals. These suggestions would burn the tokens to lower the enormous USTC supply and restore 800 million of them to the communal pool.

The first proposal, “Proposal 11658,” was made on July 30 by Vegas, a well-known member of the LUNC community. On-chain funds should be given back to the Terra Classic community pool, it is recommended. 800 million USTC are stored in significant amounts at the particular multi-sig address in question. The money for the Ozone Protocol’s capacity underwriting was first designated by the Terra ecosystem in March.

However, due to variations from the suggested development plan, they were not completely utilized as intended. The idea sought to redirect the monies to the Terra Classic neighborhood pool. This idea received a 70% approval rating from the LUNC populace.

The second proposal, “Proposal 11660,” quickly followed on July 31 as the enthusiasm continued. This idea, which is closely related to the first, calls for completely burning the money once it is returned to the neighborhood pool. As of the time of publication, the community also approved the second idea. An amazing 82.55% of voters approved the proposition. The overwhelmingly positive response to both suggestions demonstrates the proactive attitude of the LUNC community.

Reasons for the Two Proposals

Although burning the 800 million USTC will not instantly re-peg the stablecoin, it is a start in the right direction. Remember how USTC de-pegged from the dollar during the May 2022 Terra collapse because of a problem with excessive coinage that caused inflation?

Notably, the 800 million USTC allocated for the burn address is a portion of the 1 billion USTC that the Terra ecosystem reserved in March. Kwon transmitted 1 billion USTC from the Luna blockchain to Risk Harbor, a multisig address managed by the Ozone Protocol.

To meet the needs of the expanding Terra ecosystems, this decision was made. The effort planned to set aside a sizeable sum for constructing TeFi and other ecosystem initiatives. After sending 200 million USTC to exchanges, just 800 million USTC remained in the address. The money allotted, however, was not used to build Risk Harbor. The money is still in the multi-sig address as a result of this. The community wants to burn the money and restore it to the pool.

The USTC Quant Team is still making great work with the re-peg initiative amid these proposals being approved. To encourage community participation, Redline Drifter, the creator of the Divergent Protocol paradigm, has recently unveiled the Quant Simulation tool.

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