Proposal to Halt Issuance of Terra Classic's USTC Approved

Discover the unfolding dynamics in the Terra Classic community as they have overwhelmingly voted to halt the issuance of their stablecoin, USTC.

In a decisive move aimed at recovering the coin's value, the proposal goes beyond just limiting supply; it tackles loopholes and sets the stage for large-scale "USTC Burn" actions.

Targeting Price Recovery by Reducing USTC Supply

It has been revealed that a proposal to halt the issuance and reissuance of "USTC," the US dollar-pegged stablecoin of Terra Classic (LUNC), has been approved by community vote.

USTC is an algorithmic stablecoin designed to be pegged to the US dollar. However, as of May 2022, both LUNC and USTC experienced a price collapse, with the current USTC price being "$0.01265 per USTC" at the time of writing this article.

The approved proposal aims to reestablish the pegging of USTC's price to the US dollar. This proposal not only suspends the issuance and reissuance of USTC but also prevents loopholes like "converting xUST to mint USTC."

Potential for "USTC Burn" Through Major Exchanges Like BINANCE

Should the issuance and reissuance of USTC be halted, it could potentially lead to "USTC Burn" initiatives on major cryptocurrency exchanges like BINANCE, which have been participating in the LUNC Burn (a reduction in supply through burning).

In the LUNC and USTC community, active efforts are being made to reduce the supply of LUNC and USTC through burning to increase the value of each currency.

If the issuance and reissuance of USTC are halted and major exchanges begin USTC Burn, it could potentially lead to a reduction in USTC supply and consequently a recovery in price.

The proposal was approved with "59.42% in favor" and "40.56% against."