98.95% Support for Terra Luna Classic’s Removal of USTC Minting to Revitalize the Chain
The Terra Luna Classic community has voted overwhelmingly to halt the minting of USTC (Terra’s native stablecoin) by increasing the Tobin tax to a staggering 100%. This drastic decision, outlined in proposal 11868 titled “Fulfil prop #11784 by disabling USTC minting via raising Tobin tax to 100%,” is a response to recent challenges faced by the Terra Luna Classic chain and its native LUNC token.
Over the past 48 hours, the community has witnessed a surge in the value of LUNC, USTC, and even LUNA, indicating a positive market response to the proposed measures. The community and developers are now actively engaged in repeg USTC initiatives, striving to bring stability and confidence back to the Terra Luna Classic ecosystem.
A Near-Unanimous Vote
The proposal to increase the Tobin tax to 100% received almost unanimous support, with an impressive 98.95% of the votes in favor. Of the 55 validators who participated in the decision-making process, 50 agreed to implement the measure. This marks a significant moment for the Terra Luna Classic community, as all validators, including prominent entities like Allnodes and Interstellar Lounge, aligned on a proposition for the first time in months.
Disabling USTC Minting
The move to disable USTC minting aims to address concerns related to the stablecoin’s continuous creation. The market module, which allowed users to swap LUNC for other cryptocurrencies, was deactivated following the 2022 Terra-LUNA crisis. This strategic decision prevents any further market trading or coin minting within the Terra Classic ecosystem.
To avoid USTC burn during swaps, users will no longer have the option to exchange USTC for other stablecoins. However, this measure does not impact coin trading on decentralized exchanges (DEXs) like Terraswap. Existing pairs on these platforms will remain unaffected by the proposal, providing some continuity for traders.
Community and Developer Initiatives
In response to the challenges faced by the Terra Luna Classic chain, both the community and developers are actively working on repeg USTC initiatives. These initiatives are designed to restore stability to the Terra Luna Classic ecosystem and ensure the viability of the LUNC token. The positive market response in the wake of these efforts, as reflected in the recent surge in token values, indicates a renewed sense of confidence within the community.
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