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.
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