Cryptocurrency

Terra Classic (LUNC) Community Votes On Proposal to Burn 8 Million USTC

Terra Classic ecosystem tokens, LUNC and USTC, have been on a tumultuous journey, with a crash and subsequent rise from the ashes. Now, a contentious debate surrounding tokenomics is taking center stage.

The focal point of this battle is Proposal 11958, which calls for the incineration of 8 million USTC from the community pool in a bid to revive the imploded Terra Classic tokens, including LUNC and USTC.

Read Also: New Player To Push For Terra Classic (LUNC) and USTC Recovery Emerges

A Burning Question: Will it Ignite or Fizzle Out?

Supporters of the burn argue that it is a necessary step towards achieving deflation and stability. They view the 8 million USTC as excess baggage, with the community pool already holding a substantial 3.49 billion LUNC, enough to cover operational costs.

Vocal supporter, VegasMorph, emphasizes that this action sends a powerful message about actively shaping the future of the Terra Classic ecosystem.

However, skeptics remain unconvinced. The proposal received a lukewarm response, with only 28% of the community voting in favor, while 71% opposed it. An additional 1% wielded the “No with Veto” hammer.

This skepticism stems from the community’s preference for exploring alternative burn mechanisms, particularly regarding the 800 million USTC trapped in the inaccessible Risk Harbor wallet.

The community’s wariness of drastic measures is a direct result of the bitter lessons learned from the Risk Harbor saga, which serves as a painful reminder of the May 2022 crash.

In response, they are actively seeking creative solutions. Ideas under consideration include on-chain burning mechanisms and community-driven initiatives that incentivize USTC burning.

Market Reflects Uncertainty

The market mirrors the ongoing uncertainty surrounding the burn proposal. LUNC, after a brief surge, experienced a 2% dip from its 24-hour high, with the current value hovering around $0.0001441.

However, trading volume witnessed a 10% increase, indicating sustained interest in the digital asset. On the other hand, USTC remained relatively stagnant, trading at $0.0325.

Read Also: LUNC News: Major Terra Classic Recovery Proposal Enters Voting Stage

Awaiting the Phoenix’s Return

Although the 8 million USTC burn proposal may have encountered resistance, it has sparked a crucial conversation about the future of Terra Classic.

The community’s unwavering dedication to finding innovative solutions demonstrates its resilience and belief in the platform’s potential for resurgence.

Whether through targeted burns or ingenious community-driven initiatives, the ultimate goal remains the same: to restore Terra Classic to its former glory and reshape its narrative from ashes to ascendancy.

A Lesson Learned, a Shadow Cast

The inaccessible 800 million USTC trapped in Risk Harbor’s multisig wallet serves as a stark reminder of the fragility of trust and the critical need for robust contingency plans.

While the community’s decision to blacklist the wallet was necessary, it highlights the importance of exercising greater vigilance in safeguarding assets and ensuring accountability from third-party partners.


Follow us on Twitter, Facebook, Telegram, and Google News

Adedoyin Aka

Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.

Recent Posts

Solana And TRON Holders Consider FXGuys ($FXG) A Unique Opportunity For 100x Gains

It’s chaos in the crypto market, and no one knows when the bulls will take…

22 seconds ago

Big News For XRP: Incoming SEC Chair Speaks On Ripple-SEC Case For the First Time

Popular crypto influencer Amelie (@_Crypto_Barbie) has drawn attention to comments from Paul Atkins, the nominee…

23 minutes ago

Analyst Reveals XRP Strong Support For Next Price Rally

Crypto analyst EGRAG CRYPTO has highlighted $2.22 as a crucial support level for XRP, emphasizing…

42 minutes ago

Top Crypto Proponent Claims This Bull Run Is Exclusively for XRP. Here’s why

Crypto influencer Cobb (@Cobb_XRPL) has sparked a discussion on X by asserting that the current…

2 hours ago

Ripple Explains How XRP Price Will Be Invisible to Customers

A recent post by crypto researcher SMQKE (@SMQKEDQG) has drawn attention to Ripple’s perspective on…

2 hours ago

XRP Struggles to Break Through $2.35 Resistance Level, Buyers Eye Next Move

XRP has once again failed to break through the critical $2.35 resistance level. Currently trading…

2 hours ago