The Terra Classic community is still determined to burn the elusive 800 million USTC from the Risk Harbor multisig wallet. After a previous proposal failed to pass, a new contender, dubbed “Burn of 800m USTC Funds” (Proposal 11927), entered governance voting.
The saga began with Proposal 11913, aiming to burn the disputed USTC through a Terrad client update. However, concerns over potential legal ramifications raised by validator Lunanauts led to its demise. Undeterred, the community devised Plan B, which is the current proposal codenamed 11927.
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The new proposal suggests the use of a custom contract to transfer all 800 million USTC from the infamous Risk Harbor multisig wallet to a designated burn address. This approach circumvents validators’ involvement, reducing potential legal exposure.
The burning urgency stems from Risk Harbor’s admission of losing access to the wallet’s private keys. With fund recovery out of the equation, blacklisting the wallet becomes a dead end. Burning the USTC, therefore, represents the only path forward for the community to move past this lingering burden.
This technique was proposed by Lunanauts a few days ago, and the community hopes to reduce the overall USTC supply to drive up its price with this massive token burn. This burn could also boost investor confidence and hasten the recovery of the Terra Classic Ecosystem.
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Overwhelming Support from the Community
Currently, the proposal is enjoying overwhelming support, with 73.2% “Yes” votes from validators. So far, only 9.76% of validators have voted “No,” and 15.24% have chosen to abstain. Voting will end on December 27.
If over 50% of validators agree with the proposal, it will be passed and the 800 million USTC will be destroyed. However, if this proposal doesn’t pass, it will revert to the blacklist proposal 11832.
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It’s worth noting that only 4.93% of the expected total votes have been cast, indicating that the proposal still has a long way to go before it is passed.
Amid the voting drama, the market reaction has been lukewarm. LUNC price dipped 3.42% in the past 24 hours, while USTC has fared better, with a 2.71% decline in 24 hours. LUNC is currently trading at $0.0001557, and USTC is trading at $0.03358.
Both cryptocurrencies have also seen huge dips in trading volume, with LUNC dropping 58.63% to $96.5 million and USTC dropping 53.86% to $30.7 million.
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