The Terra Classic community has taken a significant step towards restoring stability to its ecosystem by voting to halt all minting and reminting activities associated with TerraUSD Classic (USTC).
This strategic move is aimed at reestablishing a solid peg between USTC and the United States dollar, with the community overwhelmingly supporting this decision.
In a recent proposal, the Terra Classic community voted decisively, with 59% in favor of discontinuing the minting of USTC, while approximately 40% opposed the change.
The primary objective behind this decision is to protect the interests of both the community members and external investors.
By reducing the supply of USTC, the community aims to facilitate the process of repegging USTC to the U.S. dollar.
This action follows a tumultuous period in Terra’s history when, in May 2022, USTC decoupled from the U.S. dollar.
This decoupling event triggered a catastrophic collapse, with Luna Classic (LUNC), closely intertwined with USTC, witnessing a nearly 100% drop in its value.
READ MORE: South Korean City Aims to Become a Leading Blockchain Hub with $75 Million Investment
This precipitated a broader downturn in the cryptocurrency markets, resulting in a staggering loss of approximately $40 billion in total market capitalization.
The proposal also emphasized that this decision would compel major cryptocurrency exchanges to initiate the burning of USTC.
“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the statement noted.
These developments occur against the backdrop of concerns within the Terra Classic community regarding an increase in spam activities following the decline in LUNC prices.
On September 10, Cointelegraph reported that the community was actively voting on multiple proposals, one of which aimed to raise the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The proposal regarding the minimum deposit requirement concluded on September 16, with an overwhelming 93.22% of the community members in favor of the proposed increase.
This decision reflects the community’s determination to implement measures that will strengthen the Terra Classic ecosystem and restore confidence in its stability.
Other Stories:
CBDC Anti-Surveillance State Act Clears Hurdle, Advances to Congressional Vote
IRM Report Highlights Bitcoin’s Potential as a Driver of Global Energy Transition
Alchemy Pay Secures Key U.S. Money Transmitter License, Expanding Crypto-to-Fiat Services
