Terra Community Proposes Burning 800 Million USTC Tokens

In 2022, the collapse of Terra LUNA and de-pegging of UST Classic (USTC) caused a major crash in the crypto market. Since then, USTC has been trading well below $1. However, the Terra community has submitted two proposals to burn 800 million tokens in an attempt to reclaim the dollar peg.

Proposal 11658 requests that the controversial tokens be returned to the community pool.
Proposal 11660 suggests burning all the tokens once they are returned to the pool.

Both proposals have received overwhelming support from the community, with 70% and 82.55% of votes in favor of Proposal 11658 and Proposal 11660, respectively. The community now awaits the return of the funds and the subsequent burn.

A screenshot from Terra founder Do Kwon shows his support for the burn. Kwon believes that the excessive wealth in the community pool could become a liability for the ecosystem.

Another Proposal Aims to Erase 800 Million USTC Tokens

A separate proposal, Proposal 11675, is currently undergoing voting to permanently remove the 800 million USTC tokens from circulation. However, this proposal is not faring as well, with only 38.91% voting in favor so far.

Will USTC Reclaim the $1 Peg?

Both proposals aim to bring USTC closer to re-pegging with the US dollar. Burning 800 million tokens would significantly reduce the available supply and potentially increase the price. It is speculated that the altcoin could reach $0.02 in the near future.

Hot Take:

The Terra community’s push to burn 800 million USTC tokens demonstrates their determination to reclaim the dollar peg. While there are challenges ahead, this move could lead to a significant increase in price and a potential re-peg with the US dollar.