Terra Classic Community Debates Proposal to Restore Stability to USTC Stablecoin
Following the collapse of Terra in May 2022, the Terra Classic community is discussing a new proposal to bring stability back to its TerraClassicUSD (USTC) stablecoin. One key aspect of the proposal is urging Binance, the world’s largest cryptocurrency exchange, to burn 50% of its USTC trading fees. This development adds another layer to the efforts of resurrecting a project that was once prominent in the crypto world.
Proposal #11785: Binance Burn Program for USTC
The first proposal, known as #11785, focuses on getting Binance to extend its fee-burning mechanism to USTC trading pairs. Currently, Binance burns 50% of its trading fees from Terra Classic pairs. If accepted, this would greatly benefit the struggling USTC stablecoin. Binance offers trading pairs like USTC/USDT and USTC/BUSD, which had a trading volume of approximately $5 million in the last 24 hours.
The logic behind this proposal is simple: if the most influential crypto exchange burns a portion of the USTC supply, it would likely strengthen efforts to re-peg the stablecoin to the US dollar and potentially increase the value of its counterpart, LUNC.
Proposal #11786: Limiting USTC Minting
Running alongside the first proposal is another initiative (#11786) that aims to restrict the minting of USTC. This aims to close any loopholes that allow unwarranted expansion in USTC’s supply. The community wants a say in any future minting activities to prevent arbitrary creation of the stablecoin.
The Voting Landscape
Currently, the proposals have divided the community. Proposal #11785 has received 41.11% favorable votes, with a significant 57.02% abstaining and only 1.73% voting against it. The proposal to limit USTC minting is also facing opposition, with 47.32% in favor and 44.34% against. Every vote counts in this tug-of-war.
These proposals represent more than just governance changes; they reflect the community’s ambitions and resilience in the face of adversity. Currently, USTC trades at $0.012, far from its intended peg to the US dollar. Time will tell if these proposals can bring stability and vitality back to the Terra Classic ecosystem.
Hot Take: Will These Proposals Save Terra Classic?
The Terra Classic community is grappling with the aftermath of Terra’s collapse and seeking solutions to restore stability to its USTC stablecoin. The proposals put forth, including urging Binance to burn USTC trading fees and limiting USTC minting, aim to address key issues affecting the stablecoin’s value.
If Binance implements the fee-burning mechanism for USTC trading pairs, it could have a significant impact on re-pegging the stablecoin to the US dollar and potentially increasing its value. Additionally, restricting USTC minting would prevent arbitrary creation and control supply expansion.
However, the community remains divided on these proposals, with significant abstentions and opposition votes. The outcome of these governance changes will determine whether Terra Classic can regain stability and thrive once again in the crypto-verse.
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