The Terra Classic community has voted to cease all minting and reminting activities related to TerraUSD Classic (USTC) in order to re-establish a stable peg between USTC and the US dollar.
In a recent proposal, the community voted 59% in favor of stopping the minting of USTC, while approximately 40% opposed the change.
This move aims to safeguard the interests of society and external investors by reducing the supply of USTC, and contribute to the goal of re-pegging the US dollar to the US dollar.
In May 2022, the University of Science and Technology of China will decouple from the US dollar. It then caused Terra to experience a catastrophic collapse, with Luna Classic (LUNC) becoming closely associated with USTC.
The value of LUNC plummeted by nearly 100%, triggering a broader downturn in the cryptocurrency market, resulting in a total market cap loss of approximately $40 billion.
The proposal said this would cause major cryptocurrency exchanges to burn USTC.
“Most importantly, this proposal opens the door for institutions like Binance to begin destroying USTC knowing that minting and reminting have ended,” the statement noted.
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It was previously reported that the Terra Classic community was concerned about an increase in spam following the drop in LUNC prices.
On September 10, Cointelegraph reported that the community was voting on multiple proposals, one of which was to increase the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The proposal closed on September 16, with 93.22% supporting increasing the minimum deposit requirement.
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