Community-Led Initiative: Terra Classic Halts USTC Minting to Restore Stable Dollar Peg
Terra Classic community votes to stop USTC minting activities to stabilize its link to the U.S. dollar.
Sun, 24 Sep 2023, 23:04 pm UTC
The Terra Classic community has made the decision to halt all activities related to the minting and reminting of TerraUSD Classic (USTC) with the aim of reestablishing a stable peg to the actual US dollar.
The community's primary goal is to restore USTC's peg to the US dollar, which became disconnected in a significant incident in May 2022. This disconnection had severe consequences for Terra and its closely linked cryptocurrency, Luna Classic (LUNC), leading to a sharp decline in their values and affecting the broader crypto market.
To protect the interests of community members and external investors, the majority of the community, accounting for 59%, supported the proposal to stop USTC minting, while approximately 40% did not see it as necessary.
The proposal also suggests that leading cryptocurrency platforms may consider burning USTC, thereby preventing excessive USTC creation. The community believes that halting minting activities could incentivize major institutions, including Binance, to take this action.
Additionally, concerns related to spam within the Terra Classic community have arisen, potentially linked to the declining prices of LUNC. One proposed solution was to increase the minimum deposit requirement from 1 million LUNC to 5 million LUNC, with an overwhelming 93.22% of the community favoring this change.
Overall, the community's decision to halt USTC minting reflects its commitment to restoring stability and trust in the cryptocurrency's peg to the US dollar.
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