Terra Luna Classic Community Proposes 800 Million USTC Burn in New Governance Vote

Terra Luna

In a significant development within the Terra Luna Classic community, a new proposal has emerged for burning 800 million USTC. The proposal was labelled ‘Burn of 800m USTC Funds’ (Proposal 11927). It is currently in the governance voting stage on the Station wallet.

The burning of these funds has become crucial following the loss of keys by Risk Harbor, the multisig wallet holding the USTC. The community seeks to address this by executing the burn via a smart contract. This will eliminate the need for wallet owners’ involvement. 

The proposal has garnered substantial initial support, with a 96% ‘Yes’ vote during the initial voting period. As the community pushes for this solution, traders closely watch the outcome, impacting the prices of both LUNC and USTC tokens.

Terra Luna Classic Plans to 800 Million USTC

With a fresh proposal, the Terra Luna Classic community is poised to address concerns regarding burning 800 million USTC. Following apprehensions about the legal implications of a previously rejected proposal (11913), validator Lunanauts has introduced Proposal 11927.

This proposal outlines a strategy to burn the remaining 800 million USTC held in the Risk Harbor multisig wallet through a smart contract. The community’s decision to proceed with the burn stems from Risk Harbor’s loss of keys and the agreement to blacklist the wallet, rendering fund recovery impractical for wallet owners.

To implement the burn, a core developer is tasked with creating a contract featuring a sole MsgSend to transfer all holdings to a burn address. The multisig contract undergoes migration to the specified code ID through governance. This minimises the need for validators to install additional code and mitigates potential legal complications.

The proposal has garnered substantial initial support, with a 96% “Yes” vote during the initial voting period, accompanied by some “No with veto” and “Abstain” votes. While some validators have endorsed the proposal, top validators have yet to vote. The voting deadline is set for December 27.

LUNC’s price experienced a 3% decline in the last 24 hours in the market. It is currently trading at $0.000155, with a trading volume surge of 141%. 

Simultaneously, USTC’s price is $0.0334, reflecting a 6% decrease in the last 24 hours. It shows a 15% decline over the past week, with a 24-hour low and high of $0.0336 and $0.0365, respectively.

Read Also: Terra Classic (LUNC) Surges 69%, Eyes $0.0003 Amid Bullish Momentum 

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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