The Terra Luna Classic community is currently supporting a significant proposal to cease all minting and reminting of USTC (Terra Classic’s native stablecoin) and initiate a process to re-peg USTC to its intended value of $1.
This move aims to breathe new life into LUNC, Terra Luna Classic’s native token. Additionally, this proposal paves the way for entities like Binance to participate in burning USTC, given the discontinuation of minting and reminting.
The Proposal to End USTC Minting and Reminting
Proposal 11776, titled “Stop Minting and Reminting of USTC,” is currently under consideration for a community vote on the Station platform. The proposal’s primary objective is to put a halt to all USTC minting and reminting activities, subject to the Terra Classic community’s approval.
Some members of the Terra Luna Classic community have raised concerns that this proposal was submitted without sufficient discussion on the Commonwealth forum. Moreover, the proposal aims to close loopholes, such as the conversion of xUST to mint TerraClassicUSD, in order to protect the interests of the community and external investors participating in USTC burning initiatives.
As of now, the proposal has garnered significant support, with approximately 85% of the community voting “Yes,” and the remaining 15% voting “No.”
Implications for Entities Like Binance
Should the proposal be successfully passed, it opens the door for entities such as the cryptocurrency exchange Binance to engage in TerraClassicUSD burning activities, as minting and reminting would be discontinued. The Terra Classic community is contemplating approaching Binance with the request to participate in burning USTC, although trading volumes for USTC remain relatively low.
LUNC and USTC Prices
Both LUNC and TerraClassicUSD prices have been experiencing sideways movement, lacking significant upward momentum, largely attributed to low trading volumes.
- LUNC price has seen a increase of 0.63% over 24 hours and is currently trading near the $0.000060 mark. The 24-hour trading range for LUNC spans from $0.0000601 to $0.0000616. Notably, trading volume has witnessed a 40% increase in the past 24 hours.
- TerraClassicUSD price stands at $0.012, reflecting a 1% gain over the last 24 hours. However, trading volume for TerraClassicUSD has slightly decreased within the same time frame, indicating limited trader interest.
In conclusion, the Terra Luna Classic community is rallying behind a proposal to cease USTC minting, and reminting, with strong support from the majority of its members. The outcome of this proposal could potentially lead to increased burning of USTC and the revitalization of LUNC, even as both tokens experience subdued price movements due to low trading volumes.
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