The Proposal to Halt USTC Minting
After the Terra LUNA crash, the Terra Classic community has been working towards re-pegging USTC. A recent proposal submitted on September 14, 2023, aims to stop the minting of new USTC unless approved by the community. This proposal seeks to close loopholes in the minting mechanism and reduce the token’s supply.
The proposal also suggests paying the Algo Quant team to re-peg USTC to the US dollar while the community continues burning tokens. This would allow larger institutions like Binance to burn USTC, protecting the community and outside investors.
Terra Classic Community Votes in Favor
The proposal gained popularity among stakeholders, leading to a voting process that lasted over a week. Ultimately, the majority of votes (59.42%) were in favor of halting minting and reminting, surpassing the required pass threshold of 50%. This means that the proposal has been passed.
By pausing minting and reminting, there will be a reduction in new token supply, potentially contributing to a positive outcome for USTC. As more USTC is burned and circulation decreases, re-pegging to the US dollar becomes more feasible.
Implications for USTC
Currently, USTC has a total supply of 9,793,581,881 with a market cap slightly over $123 million and a price of $0.01261. If it regains its dollar peg, its market cap could reach around $9 billion.
Source: NewsBTC
Hot Take: USTC Minting Halt Brings Hope for Re-Pegging
The proposal to halt the minting of USTC brings optimism to the Terra Classic community’s efforts to re-peg the cryptocurrency. By closing loopholes and reducing token supply, the chances of achieving a dollar peg increase. The community’s support for the proposal through voting reflects a unified desire for stability and growth. With USTC’s current market cap and potential value if re-pegged, this development could have significant implications for investors and institutions involved in the token. As stakeholders continue burning USTC, the path towards re-establishing its value becomes clearer.
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