Terra Luna Classic Community Plans to Burn 800 Million USTC
The Terra Luna Classic community is gearing up for a governance voting stage to burn 800 million USTC. This comes after an earlier proposal to burn the funds through an update to the Terrad client was rejected by the community. However, concerns were raised by Lunaauts, validators of Terra Luna Classic, about the legal implications of the previous proposal.
Proposal 11927: Burn of 800m USTC Funds
A new proposal, titled “Burn of 800m USTC Funds,” is now up for voting on the Station wallet. The objective of this proposal is to burn the remaining 800 million USTC held in the Risk Harbor multisig wallet through a contract. The decision to burn these funds is based on the fact that Risk Harbor has lost the keys and has agreed to blacklist the wallet, making fund recovery and blacklisting unnecessary.
The Process of Burning the Funds
To execute the burn, a core developer needs to create a contract with a sole MsgSend to transfer all holdings to a burn address. This multisig contract will then be migrated via governance to that code id. This approach eliminates the need for validators to install any code, thereby minimizing potential legal implications.
Voting Status and Market Impact
The initial voting for Proposal 11927 has seen 96% “Yes” votes, along with some “No with veto” and “Abstain” votes. While some validators have already shown support for the proposal, top validators are yet to vote. The deadline for voting is December 27.
In terms of market impact, LUNC price has experienced a 3% decline in the past 24 hours, currently trading at $0.000155. However, trading volume has increased by 141% during this period. On the other hand, USTC price is trading at $0.0334, down 6% in the last 24 hours.
Hot Take: Terra Luna Classic Community Takes Steps Towards Burning 800 Million USTC
The Terra Luna Classic community is actively pursuing a proposal to burn 800 million USTC held in the Risk Harbor multisig wallet. After rejecting a previous proposal due to legal concerns, the community has now put forth a new governance voting stage to execute the burn through a contract. This decision comes as Risk Harbor has lost the keys and agreed to blacklist the wallet, making fund recovery and blacklisting unnecessary. While the voting process is ongoing, market reactions have been observed, with LUNC price experiencing a decline and increased trading volume. The outcome of the voting will determine the fate of these funds and their impact on the Terra Luna Classic community.
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