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Terra Classic community decides to halt USTC minting.

In a recent decision, the Terra Classic community has voted to halt all minting and reminting activities associated with TerraUSD Classic (USTC).

The purpose behind this move is to restore a stable peg between USTC and the United States dollar.

After a recent proposal, the community approved the decision with a 59% majority in favor of discontinuing USTC minting, while approximately 40% opposed the change.

This outcome reflects the community’s efforts to address and maintain the stability of USTC’s value in relation to the US dollar.

Terra Classic poll results.
Terra Classic poll results.

With the objective of protecting the interests of the community and external investors, the decision to cease USTC minting aims to reduce the supply of USTC and work towards reestablishing a stable peg to the U.S. dollar.

The depegging of USTC from the U.S. dollar took place in May 2022, which had significant consequences for Terra.

The collapse of USTC had a detrimental impact on Luna Classic (LUNC), as the two were closely linked.

The value of LUNC plummeted by nearly 100%, triggering a widespread downturn in the cryptocurrency markets.

This downturn resulted in an approximate loss of $40 billion in total market capitalization.

The fallout from USTC’s depegging reverberated throughout the crypto industry, underscoring the need for measures to restore stability and rebuild trust.

Terra Classic Community Takes Decisive Steps to Combat Spam and Stabilize USTC Supply

Terra Classic Community Takes Decisive Steps to Combat Spam and Stabilize USTC Supply

The recent proposal put forth by the Terra Classic community paves the way for significant action by major cryptocurrency exchanges, including the burning of USTC tokens.

By ceasing minting and reminting activities, institutions such as Binance can now actively engage in the burning process, contributing to the reduction of USTC supply.

Moreover, The decision to halt USTC minting arises from concerns raised by the Terra Classic community regarding an increase in spam, which coincided with a decline in LUNC prices.

These concerns prompted the community to take measures to address the situation and restore stability.

Although, On September 10, the community commenced voting on various proposals, one of which involved raising the minimum deposit requirement from 1 million LUNC to 5 million LUNC.

Furthermore, The voting period concluded on September 16, with an overwhelming 93.22% of participants supporting the proposal to increase the minimum deposit requirement.

finally, This series of actions showcases the proactive approach taken by the Terra Classic community to address challenges, combat spam, and strengthen the ecosystem through consensus-driven decision-making.

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