Terra Luna Classic Community Seeks Binance’s Support to Burn USTC
The Terra Luna Classic community is proposing that crypto exchange Binance extend its support to burn USTC (Terra USD Classic) on a monthly basis, in addition to the current LUNC burn mechanism. The aim of this proposal is to help the community and the Quant USTC developer team in repegging USTC to its intended value of $1.
Proposal for Binance to Start Burning USTC
The proposal, titled “Asking Binance to Start Burning USTC,” is currently up for voting on Terra Classic Station. Initial voting indicates strong support from the community, with 97% of votes in favor of the proposal. The voting deadline is September 21.
Notably, validators such as JESUSisLORD have expressed their support for the proposal via Twitter.
Burning USTC and Repegging to USD
The community’s goal is for Binance to begin burning USTC on a monthly basis. Currently, Binance burns 50% of LUNC tokens through its monthly burn mechanism. With this proposal, the community hopes that Binance will also burn USTC with the remaining 50%, which would contribute to the successful repegging of USTC to the USD.
“By having the largest cryptocurrency exchange in the world help burn the circulating supply, it will directly contribute to the success of the re-peg of USTC to the USD.”
Quant USTC Repegging Efforts
In addition to seeking support from Binance, the Quant USTC repeg team is working on various strategies, including market swaps and automatic market makers, to achieve the desired repeg of USTC to $1. However, their previous plan was unsuccessful as centralized exchanges did not agree to it.
Potential Benefits and Current Prices
If proposal 11784 “Stop USTC minting and reminting” is passed, it could open the door for large institutions to burn USTC, benefiting investors who hold USTC or LUNC. Currently, the price of LUNC is trading at $0.000057, while USTC has experienced a 3% increase in the past 24 hours and is currently trading at $0.0125.
Hot Take: Binance’s Support Can Drive USTC Repegging Success
The Terra Luna Classic community’s proposal to have Binance burn USTC on a monthly basis demonstrates their strong commitment to achieving the desired repeg of USTC to $1. By leveraging Binance’s status as the largest cryptocurrency exchange, this move can directly contribute to the success of the re-pegging efforts. Additionally, passing proposal 11784 may further enhance the community’s efforts by allowing large institutions to participate in burning USTC. These developments have the potential to benefit investors and contribute to the overall growth and stability of Terra Luna Classic.
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