Terra Classic votes to stop USTC minting after deviating from its $1 peg, aiming to protect the community and re-peg to USD.
- Terra Classic community approves a proposal to cease the creation of terra usd (USTC) with a majority vote of 59.42%.
- USTC, once a stablecoin pegged to the USD, currently trades at $0.0127, marking a significant departure from its $1 peg.
- The Terra blockchain ecosystem’s collapse saw a surge in LUNA’s supply but a stark decline in its value.
- The proposed measures are geared towards protecting the community and fostering a re-pegging of USTC to the U.S. dollar.
Following a majority decision by the Terra Classic community, a proposal to cease the minting of the USTC stablecoin has been sanctioned. Though faced with 40.56% dissent, the proposal received a 59.42% majority green light for the software alteration.
Currently ranking 200th among a vast array of over 10,000 crypto assets, USTC observed a 4% appreciation within a day. The coin, once steadfastly pegged at $1 to the USD, began to deviate on May 9, 2022, and never regained its peg.
🌐 Terra Classic Community Votes to Halt USTC Minting, Eyeing Future Re-Peg 🌐
In a decisive move, the Terra Classic community has approved a proposal to halt the creation of the stablecoin known as USTC (formerly Terra USD or UST). Despite a 40.56% opposition, an overwhelming… pic.twitter.com/lVAMMltVSY
— Crypto.Anu🌐 (@CryptoAnu_) September 25, 2023
The Terra Blockchain
The Terra blockchain, though facing adversities, persisted through the dedication of its user and developer community. Historically, the platform was instrumental in facilitating transactions between the once-stable USTC and LUNA. A consequence of this was the exponential increase in the supply of LUNA. The recently approved governance proposal endeavors to halt USTC minting via software modifications. It aims to eliminate certain bypasses, ensuring no minting or reminting of USTC happens without the explicit consent of the Terra Classic community.
The proposal also mentions the prohibition of specific loopholes like converting xUST for USTC minting. The Algo Quant team, funded by the community, is working towards re-pegging USTC to the USD. The Terra Classic community has also been participating in the USTC supply burn to facilitate this re-peg.
There’s a collective optimism within the community concerning the re-peg of USTC to the U.S. dollar. As USTC’s value remains at a mere $0.012, LUNA’s valuation has suffered dramatically. Despite a recent 5% uptick, LUNA trades at an abysmal $0.00006206 per unit, a stark decline from its pinnacle of $119.18.
To Sum it All Up….
The Terra Classic community’s resolve to halt USTC minting underlines the challenges faced by many crypto projects when maintaining a peg to traditional fiat currencies. This development underscores the importance of robust governance structures and community involvement in navigating such challenges. The road to re-pegging USTC to the USD might be arduous, but the community’s proactive approach is commendable.