An attempt to suspend the production of the formerly referred-to stablecoin, terra usd (often referred to as UST or USTC), has been accepted following a resounding vote by the Terra Classic community. 40.56% of voters opposed the software upgrade, but 59.42% of them approved it.
Approved: Minting Freeze for USTC
The value of USTC, which is ranked 200 out of more than 10,000 crypto assets in the crypto market, has increased by 4% merely in the past day. One USTC is worth $0.0127 as of 1:00 PM Eastern Time on September 24, 2023. Prior to the Terra ecosystem's decline in May 2022, this stablecoin maintained its peg to the USD for a considerable amount of time at a solid $1 per unit. USTC lost its peg to the US dollar on May 9, 2022, and it never regained it.
Despite the environment of the Terra blockchain trembling, a community of users and developers persisted. Trades between the formerly stable coin and LUNA are facilitated by the Terra blockchain, a phenomenon that caused the latter's supply to soar into the billions. The governance motion aims to use software modifications to stop the USTC minting process. A significant 59.42% of participants supported the proposal, which sought to close various loopholes and USTC minting.
The proposal states that it "would stop all minting and reminting of USTC without the consent of the Terra Classic community." The conversion of xUST to mint USTC is one gap that is closed by this proposal. The Terra Classic community is taking part in the burning of the USTC supply, which helps to facilitate the re-peg, and we pay the Algo Quant team to do it.
The community is still hopeful about the subject, which has dominated talks for the past year: re-anchoring USTC to the US dollar. The proposal highlights that "this proposal protects the community and outside investors who are burning USTC helping to achieve the repeg." USTC is valued at $0.012 per coin, however LUNA is worth far less. Despite a 5% increase versus the dollar, LUNA is only worth $0.00006206 per unit, a 99.99999% down from its all-time high of $119.18.
What are your thoughts on the community's decision to stop minting USTC? Post your ideas and viewpoints on this topic in the comments area below.