Terra Luna Classic Community Votes to Cease Minting and Reminting of USTC Tokens
The Terra Luna Classic (LUNC) community has made a significant decision to stop the minting and reminting of Terra Classic UST (USTC) tokens. This move comes as a rescue attempt for the struggling stablecoin, following Terra’s collapse in May 2022, which had a negative impact on USTC’s value.
A Comprehensive Plan to Re-peg USTC to the Dollar
To facilitate the re-pegging process of USTC, the community proposes to halt its minting and reminting. Additionally, members are encouraged to participate in burning USTC tokens, which reduces the circulating supply and helps accelerate the re-pegging process.
Terra’s Network Collapse and Oversupply of LUNA Tokens
Before the collapse, users could easily swap between USTC and LUNA on Terra’s blockchain network. However, due to the loss of USTC’s peg to the US dollar, the system started minting LUNA coins in an attempt to restore stability. This led to an oversupply of LUNA tokens and caused a decline in USTC’s value.
Terra Luna Burning Challenge
The community aims to increase the value of LUNA tokens by accelerating their burning process. Currently, only 75 billion LUNC tokens have been burned out of a total supply of 6.84 trillion. The oversupply of LUNA tokens contributed to a decrease in their price and negatively affected USTC’s value.
Revitalizing USTC through Bold Measures
The decision to cease USTC minting and reminting demonstrates the community’s determination to revive the stablecoin. By focusing on burning LUNA tokens and addressing the supply-demand imbalance, the community hopes to restore USTC’s $1 peg and bring about redemption.
Hot Take: Terra Luna Classic Community Takes Drastic Measures to Save USTC
The Terra Luna Classic community has voted overwhelmingly to halt the minting and reminting of USTC tokens. This decision is part of a comprehensive plan to re-peg USTC to the dollar and revive the struggling stablecoin. By encouraging the burning of LUNA tokens, the community aims to increase their value and correct the supply-demand issue. This bold move showcases their determination to steer USTC back on track towards its $1 peg and offers hope for its redemption in the challenging crypto market.
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