Godfrey Benjamin
The Terra Classic (LUNC) community is making a move to take another massive quantity of digital currency out of circulation in line with its deflationary or burning campaign.
The 800M USTC Burn Proposal
According to a Proposal submitted by Fragwuerdig, the developers are looking to part away with the 800 million USTC domiciled in the Risk Harbor Wallet.
Judging by community proceedings, there are obvious divisions and sects within the Terra Classic community, a trend that hampers major decision-making. One of these is the 800 million USTC in the Risk Harbor. Per the proposal presentation, this fund has been a primary source of ecosystem politics and drama.
While there is an existing agreement to burn the tokens in this wallet, the managers of the wallet allegedly lost the keys, making the burning almost impossible. Per the sheer disunity in the Terra Classic community, different parties and stakeholders are unable to agree on chain burning through a hard fork for this set of USTC tokens which at the moment are worth roughly $26 million.
Burn 800 million for good is up for deposit…#LFG #Burn #ustc #terraclassic pic.twitter.com/uwhcVTs53l
— Vegas (@VegasMorph) February 19, 2024
With the dilemma spelled out, the current proposal seeks to solve this dilemma by implementing a contract migration. This will return the control of the assets to more active developers who can then implement the burn.
Burning the excessive LUNC and USTC supply remains Terra Classic’s biggest bet to revive its lost price valuation and glory. Thus far, many entities have been involved in the burning with Binance exchange playing a frontline role. Should the current proposal pass, it will shrink the supply of USTC from its current 8.96 Billion tokens to 8.1 billion.
Terra Classic Price Setting Pace for Parabolic Run
Following the USTC burn update, the price of the algorithmic stablecoin and its sister token LUNC recorded a major uptick to show the community is receiving the news very well.
USTC is changing hands at $0.03255, up by 2.35% in the past 24 hours while Terra Classic has pared off its losses from earlier in the day with its price jumping by 4.6% to $0.0001296. As observed in the past, LUNC or USTC burn updates have always driven price surges and as new trends emerge per the current proposal, steeper price jumps are imminent.
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