Terra Classic Votes to Halt USTC Minting to Stabilize Dollar Peg, Triggers Major Changes in Crypto Market
Summary:
The Terra Classic community has approved a halt to all minting and reminting of TerraClassicUSD (USTC) to stabilize its peg with the US dollar. Approximately 59% supported the cessation, aiming to protect investors by reducing USTC supplies. After a significant breach from the US dollar in May 2022, USTC caused Luna Classic's (LUNC) value to drop almost 100%, leading to a wider market slump. Consequently, major crypto exchanges will initiate the USTC eradication process. This decision comes amidst concerns over increased spam following the LUNC price drop.
Terra Classic's community has endorsed a halt to all minting and reminting actions for TerraClassicUSD (USTC) in a bid to stabilize the peg with the US dollar. A recent vote saw a majority 59% support the cessation of USTC minting, while around 40% opposed this shift. This move, pegged by an Atom Scan-published poll, aims at protecting both community and outside investors' interests by curtailing USTC supplies, consequently driving a repeg to its objective.
USTC drew attention in May 2022 due to its significant breach from the US dollar, leading Terra to undergo a disastrous decline as Luna Classic (LUNC) was closely aligned with USTC. The value of LUNC dropped almost 100%, igniting a wider crypto market slump and causing around $40 billion in total market cap to evaporate.
The proposal indicates that leading crypto exchanges will initiate the USTC eradication process. The statement added, "This proposal is key as it leads institutions such as Binance to begin USTC burning, knowing that minting and reminting have ended."
This all takes place amidst mounting concerns by the Terra Classic community over the rise in spam consequential to the Luna Classic (LUNC) price drop. The community cast votes on various propositions, one suggesting a raise in the minimum deposit prerequisite from 1 million LUNC to 5 million LUNC, as reported by Cointelegraph on September 10. This proposition concluded on September 16, with an overwhelming 93.22% amenable to hike the minimum deposit requirement amount.
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Published At
9/24/2023 6:28:11 AM
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