The Terra Classic community has recently made a decision through a majority vote to halt the creation and recreation of TerraUSD Classic (USTC) tokens.
This move is intended to restore a stable connection between USTC and the United States dollar, safeguarding the interests of the community and external investors by reducing the supply of USTC.
The decision was supported by 59% of the community, while roughly 40% opposed it.
Back in May 2022, USTC became unlinked from the U.S. dollar, which had severe consequences for Terra, leading to a significant drop in value, especially for Luna Classic (LUNC), which was closely linked to USTC. LUNC’s value plummeted by nearly 100%, triggering a broader decline in the cryptocurrency markets and resulting in a total market capitalization loss of approximately $40 billion.
As part of this decision, major cryptocurrency exchanges are expected to destroy USTC tokens. Furthermore, the proposal opens the door for institutions like Binance to initiate the burning of USTC now that minting and reminting activities have ceased.
This move follows concerns within the Terra Classic community about an increase in spam messages following the decline in LUNC prices.
Additionally, it was reported on September 10 by Cointelegraph that the community was voting on several proposals, including one to raise the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The voting on this proposal concluded on September 16th, with an overwhelming 93.22% in favor of increasing the minimum deposit requirement.