Terra Classic’s Ambitious Repeg Plan Calls for Binance to Burn 50% of USTC Fees

As part of its efforts to restore Terra Classic to previous remarkable heights before an unfortunate collapse in 2022, Terra Classic recently came up with new proposals, hoping they could help re-establish Terra Classic’s dominance. 

Notably, these proposed suggestions have been made public on Terra Classic’s governance forum. The Terra Classic Community members would determine the implementation of these new sets of proposals via their votes. 

Terra Classic’s Proposal To Cut Down The Disparity Between USD And USTC

Among the submitted recommendations aimed at improving the Terra Classic ecosystem are plans to help the embattled USTC attain similar levels with the U.S. dollars. What does this peculiar plan entail? 

The above proposal was tagged “11785 | Text proposal.” It suggested that Binance, one of the leading exchanges, begins to burn 50% of USTC monthly in addition to the 50% LUNC tokens the exchange firm has been incinerating for quite some time. 

An extract from the proposal noted, “Having the largest cryptocurrency exchange in the world to help burn the circulating supply will directly contribute to the success of the re-peg of USTC to the USD.”

In addition, the recommendation argued that the involvement of Binance in USTC’s incineration project would help improve LUNC’s market outlook. Also, other top exchanges might be tempted to get involved in this project, implying good fortunes for LUNC and USTC owners. 

Meanwhile, it is worth noting that Binance currently offers two trading pairs involving USTC. These trading pairs are USTC/USDT and USTC/BUSD duos, making a potential burn campaign feasible with Binance integration. 

As stated earlier, the final decision to either implement or discard the proposal will depend solely on the Terra Classic community members’ votes. At the time of writing, 42.86% of participants voted in support of the proposal, 55.56% chose to abstain, 0.12% opted for a no with veto, and just 1.46% went with a simple no. 

Meanwhile, only 430.07 billion participants out of an expected 1.01 trillion community members have voted. It is left to see the outcome once a reasonable number has voted. Notably, voting ends at a designated time on 21 September 2023. 

Restricting USTC Minting

Aside from initiating a potential USTC burn campaign, there was also a proposal to limit USTC minting. This particular suggestion tagged the 11784 | Text proposal is also open to voting by the Terra Classic community members. 

Apart from stopping every form of minting and reminting of USTC without the Terra Classic community members’ approval, the proposal also aims to cancel out loopholes, especially using xUST to mint USTC. 

At the time of writing, the voting statistics revealed that only 488.66 billion out of 1.01 trillion expected voters had voted. 55.42% of votes supported the proposal, 37.71% voted against the recommendation and 6.87% chose to abstain from the voting procedures.