Terra Classic Takes Action: Voting to End USTC Creation and Re-peg to USD
The Terra Classic community has voted decisively to approve an initiative aimed at halting the creation of the stablecoin Terra USD (USTC), commonly known as UST or USTC.
Despite facing 40.56% opposition, an overwhelming 59.42% of the community has given their approval for this significant software update. USTC, which currently ranks 200th among the numerous crypto assets in the cryptocurrency ecosystem, has experienced a recent 4% increase in value within the last day. As of September 24, 2023, at 1:00 p.m. Eastern Time, a single USTC is trading at $0.0127. This marks a notable shift from its history when it remained consistently pegged to the U.S. dollar at $1 per unit before experiencing a deviation from this peg on May 9, 2022, from which it has not returned.
Throughout the challenges faced by the Terra blockchain ecosystem, a dedicated community of users and developers persevered. The Terra blockchain is known for enabling trades between USTC and LUNA, which has resulted in a significant increase in LUNA’s supply, reaching into the trillions. The governance motion that has now received strong support seeks to put an end to the USTC minting process through software adjustments and close certain associated loopholes.
The proposal aims to stop all minting and reminting of USTC without the explicit approval of the Terra Classic community. Additionally, it addresses loopholes such as the conversion of xUST to mint USTC. The community is also making efforts to re-peg USTC to the U.S. dollar, which is a significant topic of discussion. The proposal emphasizes that this decision aims to protect the community and external investors who are actively participating in burning USTC to facilitate the re-peg.
Clever Robot News Desk 26th September 2023
