Terra Classic Denies USTC Burn Proposal, But LUNC Spikes 10%

8M USTC burn proposal dismissed: Terra Luna Classic community decides to cease fire, aiming to provide liquidity for new projects.

Blue man trying to deny the existance of a pile of burning UST coins next to him.
Created by Gabor Kovacs from DailyCoin
  • Terra Classic community refuses to burn 8M USTC in the Community Pool.
  • Members argue that the funds could serve as liquidity for upcoming projects.
  • Terra Luna Classic (LUNC) picks up 10% gains as USTC tumbles below 3 cents.

After carefully casting their votes, Terra Luna Classic community members have denied the third USTC burning proposal. Proposal #11958, titled “Burn 8 million USTC directly from CP,” tackles the funds in Terra Classic’s Community Pool. According to live on-chain records, currently, there are 8,124,181 USTC and 3,641,656,774 LUNC in the pool.

While most top validators on the network voted ‘No’ to create a spending proposal to send the cryptocurrency to burning addresses, only a few members elaborated on social media regarding the decision.

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Terra Classic member BRLG Crypto from Brazil explained a massive difference between the initial proposal of burning 800M Terra Classic USD (USTC) tokens from a banned cryptocurrency address, once owned by the Risk Harbor project. 

As the failed crypto project’s administration lost the private keys to the wallet, the devs themselves agreed upon burning the 800M USTC locked inside the multi-sig crypto wallet.

On the other hand, the 8M USTC located in the Community Pool can still be utilized in other ways, for example, spending it on Terra Classic chain development, hiring new personnel, or setting up a contest for developers working on decentralized applications (dApps) that could bring back a piece of Terra Classic’s former glory.

Rejected Proposal Sends Terra Classic 10% Up

The rejuvenation of the ‘Zombie UST,’ which dramatically crumbled to pieces in May 2022, is not going as fast as most investors would expect due to the lack of stability in the relaunched Terra Classic network. However, the rebranded Terra Classic USD (USTC) had its moment of shine in 2023, as Terra Classic’s malfunctioning stablecoin reached 7 cents in days.

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While the late 2023 governance proposal to fix the sequence mismatch issue bore fruit, Terra Classic USD’s road to $1 repeg was overshadowed by a gradual market correction, sending USTC back below $0.03. At press time, Terra’s malfunctioning stablecoin trades at $0.028.

On a brighter note, Terra Classic’s main token, Terra Luna Classic (LUNC), is nearing a bullish crossover after picking up 10% gains in the last 24 hours. LUNC is looking to close above the pivotal resistance of $0.00013288 to sustain the bullish momentum.

Despite holding this level for most of the week, LUNC trades at $0.00012479. As the market correction sent down LUNC below the crucial barrier, Friday’s Bitcoin ETF developments can also heavily affect the daily close.

On the Flipside

  • While community members denied the latest three burning proposals, the globally leading crypto exchange Binance carries on with monthly LUNC burns.
  • In the latest installment, Binance set ablaze 5.59 billion Terra Luna Classic tokens accumulated from the relevant trading pairs on the CeFi platform.

Why This Matters

The rejuvenation of the Terra Classic chain is in the best interest of crypto traders affected by the 2022 Terra Luna fiasco.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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.