The Terra Classic (LUNC) community has just taken a bold step. When analyzing the recent trajectory of Terra Classic USD (USTC), it is clear that change was necessary.
USTC, an algorithmic stablecoin linked to Terra Classic, played a crucial role in the recent crisis that shook the Terra ecosystem with a $45 billion impact. Originally, the Terra platform allowed users to freely exchange between UST and its sister coin, LUNA. However, a disturbance in the mechanism caused this parity to be altered.
In May 2022, the value of UST diverged from its anchoring and as a result, trillions of LUNA tokens were created. The value of UST was traded for less than a cent. It was a tumultuous time for crypto investors and enthusiasts.
$ AWAY proposal #11785 asking #Binance to burn 50% of $USTC along with 50% of #LUNC has passed.
If you would like to see @cz_binance start to burn USTC, respectfully smash the like button and retweet! pic.twitter.com/0PzpUS1KBh
— Terraport Finance (@TerraValidators) September 23, 2023
In the search for solutions and a way to stabilize cryptocurrency, the community decided to vote. And with a significant 59% approval, it was decided to discontinue the minting mechanism associated with USTC. The vision is clear: protect investors and start burning trillions of tokens produced at the height of the crisis.
The numbers, provided by LUNC Metrics, show that the community has already burned around 75 billion tokens, which represents approximately 1% of the 6 trillion tokens in circulation. Currently, USTC's market cap is $0,012, and the hope is that with this move it can eventually return to its original value of $1.
What this decision means for the future of USTC and the Terra ecosystem in general is something only time will tell. However, one thing is certain: the community is united and willing to take drastic measures to protect its investors and the integrity of the coin.
