The Terra Classic community is currently voting on a proposal to make Binance, the world’s largest cryptocurrency exchange, burn 50% of the trading fees generated from USTC trading pairs. It should be noted that USTC is an algorithmic stablecoin that runs on the Terra Classic blockchain.
This initiative is part of an ambitious plan to stabilize the USTC stablecoin, which experienced a significant de-pegging after the Terra collapse of May 2022.
This new proposal is not the first in an attempt to push USTC back to $1. The proposal for a USTC repeg team passed recently. Another proposal was also passed in August to burn 800 million USTC tokens to aid the anticipated repeg and LUNC recovery.
Proposal #11785, one of the new ones, seeks to extend Binance’s existing practice of burning part of monthly trading fees for Terra Classic (LUNC) pairs. These pairs have a combined trading volume of approximately $5 million in the past 24 hours and will represent a significant increase in burns for USTC.
The rationale behind this proposal is the involvement of the world’s largest crypto exchange. Additionally, it might incentivize other Exchanges to adopt similar practices of LUNC burn.
At the time of writing, 43.34% of validators voted. 43.08% voted in favor of the proposal, which are 19 of the validators. 4 of the validators, making up 9.59%, voted against it, and 1, which is 0.14% voted no with a veto. 47.18%, which are 6 of the validators, have abstained from voting. 92 validators are yet to vote, and voting ends at 12:43:49 on September 21.
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The proposal needs to hit 50% to cross the pass threshold. All Nodes Staking, the validator with the most voting power, has chosen to abstain from voting.
Voting turnout is much lower than expected despite big players like JESUSisLORD (@ForTheCross_CH) pushing for it on X. The community is desperate to persuade Binance to incorporate a monthly burning mechanism for USTC, aligning it with the 50% of LUNC burned monthly.
If adopted by Binance, the collaboration could potentially facilitate the Terra Luna Classic community’s goal of reestablishing USTC’s peg to $1. Notably, Binance is the largest contributor to LUNC burning, having burned nearly 38 billion LUNC tokens.