The community is in favour of putting a stop to TerraUSD Classic (USTC) coin production and reminting in favour of igniting tokens to reinstate its peg to the US dollar. To maintain a stable peg between USTC and the US dollar, the Terra Classic community has decided to stop all minting and reminting actions linked to TerraUSD Classic (USTC).
The community just decided to stop minting USTC, with 59% voting in favour and 40% voting against the change. By restricting the supply of USTC, the action seeks to advance the objective of a repeg to the US dollar while protecting the interests of both the local people and outside investors.
USTC’s peg to the dollar was broken in May 2022. The result was a catastrophic collapse of Terra, with Luna Classic (LUNC) and USTC being closely related.
A larger decline in the cryptocurrency markets was sparked by the nearly 100% decline in value of LUNC, which cost the market capitalization of all cryptocurrencies about $40 billion.
According to the idea, burning USTC would cause significant crypto exchanges to do so. The statement said that the idea “most importantly opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over.”
This comes amid claims that the Terra Classic community is worried about an increase in spam as a result of a drop in LUNC prices.
On September 10, a report stated that the community would be voting on a number of ideas, one of which would increase the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
On September 16, the proposal came to a conclusion with 93.22% in favour of raising the minimum deposit requirement.