A critical proposal to burn 640 million USTC tokens has sparked debate in the Terra Classic community. The proposal, submitted by community member Afzal, would see the majority of the tokens taken out of circulation, while the remaining 20% would be sent to the Terra Classic community spend pool.
The proposal has been met with mixed reactions from community members. Some have expressed support for the proposal, arguing that burning a large chunk of USTC would help to restore the stablecoin’s value. Others have argued that all 800 million USTC tokens should be burned, as sending any to the community pool would only serve to dilute the supply.
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The proposal is currently being voted on by the Terra Classic community. If it passes, it would be a significant step towards reviving the USTC stablecoin. It implies that 80% of the 800 million USTC (640 million USTC), will be destroyed. While the remaining 20% (160 million USTC), is expected to be sent to the Terra Classic community pool.
$LUNC community, an important proposal has come to light!
80% of the 800 million $USTC burned and 20% of the 800 million $USTC to the community pool (prop 11671)
This is the best middle ground that benefits both the community and the developers.
I'm voting yes! pic.twitter.com/njCWmTh3xm
— Levi (@LeviRietveld) August 3, 2023
USTC Quant Team Makes Progress on Repegging
In other news, the USTC Quant Team has made significant progress on the repegging of the stablecoin. The team has initiated a direct line of communication with Binance and is working on a number of other initiatives to restore the value of USTC.
The repegging of USTC is a top priority for the Terra Classic community. If the stablecoin is able to regain its peg to the US dollar, it would be a major boost for the Terra ecosystem.
Read Also: LUNC to $1 Target on Course as Binance Discusses USTC Repeg Initiative with Terra Classic Team
The Future of TerraClassUSD (USTC)
The future of USTC is uncertain, but the recent proposal to burn 640 million tokens is a positive sign. If the proposal passes, it would be a significant step towards restoring the stablecoin’s value.
As aforementioned, the repegging of USTC is also a top priority for the Terra Classic community, and the USTC Quant Team is making progress on this front.
Only time will tell whether USTC will be able to regain its peg to the US dollar. However, the recent developments are good indications that there is hope for recovery.
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