Terra Classic Community Split on ‘Burn It All’ USTC Proposal

The heated debate is centered around USTC burns, with most of the malfunctioning stablecoin located in a banned crypto wallet.

Terra Classic coin breaking in half as a result of an internal explosion.
Created by Gabor Kovacs from DailyCoin
  • LUNC community members decide on the fate of USTC, located in the Community Pool.
  • Risk Harbor devs previously agreed to give up the 800M USTC assigned to the team.
  • Chain validators argue that the USTC could be used for other initiatives besides burning.

Terra Luna Classic community members are divided into two camps about the next steps in revitalizing the battle-scarred blockchain. One of the latest governance proposals reminds the community that 800 million Terra Classic USD (USTC) tokens remain in the Risk Harbor Multisig Wallet.

Earlier, the Risk Harbor developer team agreed to give up the wallet’s funds, as the keys were previously lost and the wallet address banned. The newest proposal, #11958, “Burn 8 million USTC directly from CP,tackles the issue of 8.03 million USTC tokens being held in the Community Pool without any particular use.

Here’s Why USTC Burn Proposal Faces Obstruction

Intriguingly, proposal #11958 comes just a few days after the Terra Luna Classic community rejected the 800M USTC burn proposal aimed at burning it all at once. On the other hand, the revised proposal touches upon the burning of USTC and LUNC inside the community pool. Besides the 8.03M USTC, the community pool also holds 3.49 billion LUNC.

Receiving only 28% ‘Yes’ votes, a whopping 70% of voters so far are categorically against the burning, while another 2% vetoed the proposal. Terra Classic members on X argue that the USTC could be used for community initiatives. In comparison, the 800M USTC located in Risk Harbor’s wallet is unworkable because Risk Harbor’s developers reported having lost the private keys to the multi-sig wallet.

On the Flipside

  • After USTC’s 300% reinforcement run to $0.061 last month, the malfunctioning stablecoin returned to $0.032, plummeting by 43.3% since the yearly high.
  • The #86 ranked Terra Luna Classic (LUNC) flopped by 5% amid the voting but is still 20% up monthly due to resolving the sequence mismatch issue.

Why This Matters

Terra Luna Classic chain validators, delegators, and other prominent members are searching for an effective solution to revamp the embattled blockchain via burning.

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Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.