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Terra Classic community elects to cease USTC minting

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The Terra Classic community has voted in favor of ceasing all minting and reminting activities related to TerraClassicUSD (USTC), with the objective of reestablishing a stable peg between USTC and the US dollar.

In a recent proposal, the community voted with 59% in favor of discontinuing the minting of USTC, while approximately 40% were opposed to the change.

Terra Classic poll results. Source: Atom Scan

This proposal serves to safeguard the interests of both the community and external investors by reducing the supply of USTC, thereby contributing to the goal of a repeg.

In May 2022, USTC made headlines for its notable detachment from the US dollar. Subsequently it caused Terra to experience a catastrophic decline, as LUNC was closely tied to USTC. 

LUNC’s value plummeted by nearly 100%, setting off a broader downturn in the crypto markets and resulting in the loss of approximately $40 billion in total market capitalization.

It notes that the proposal will prompt major crypto exchanges to commence the USTC elimination process.

“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the statement noted. 

Related: Lack of stablecoin regulation could push issuers out of US — Austin Campbell

This comes after reports that the Terra Classic community is concerned about an uptick in spam following the decline in Luna Classic (LUNC) prices.

On September 10, Cointelegraph reported that the community is voting on multiple proposals, one of those being to raise the minimum deposit requirement from 1 million LUNC to 5 million LUNC.

The proposal ended on September 16, with 93.22% in favor of the minimum deposit requirement amount being increased.

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