The Terra Classic community has voted to stop the minting and reminting of Terra Classic UST tokens, hoping this will help the failed stablecoin regain its value.
In a proposal that passed with 59% in support, the community moved to stop all the minting and reminting of USTC.
Stop Minting Terra Classic USTC
USTC is the failed stablecoin at the center of the Terra ecosystem collapse that wiped about $40 billion from the crypto market last year. The stablecoin’s value fell to pennies at the time, while Luna Classic (LUNC) supply increased to more than 6 trillion.
“This proposal also stops loopholes such as converting xUST to mint USTC. We pay the Algo Quant team to re-peg USTC to USD, and the Terra Classic community is participating in the burning of the USTC supply,” the proposal reads.
With this proposal, the community hopes to speed up the burning of LUNC so that its value can increase. This will effectively restore the value of USTC. But the possibility of that happening is slim.
So far, only 74.91 billion LUNC has been burnt, which leaves the circulating supply at 5.82 trillion and a total supply of 6.84 trillion.
Following the proposal’s passage, the USTC price increased by 3.9% to $0.0129, continuing its positive performance over the last 30 days. LUNC also gained 2% and has seen its value rise 8.3% in seven days.
SEC Wants to Depose Do Kwon
Meanwhile, the United States Securities and Exchange Commission (SEC) recently filed a motion seeking to depose the former CEO of Terraform Labs and mastermind of the Terra UST Do Kwon.
The disgraced crypto entrepreneur is serving prison time in Montenegro and will be there until the end of the year. But the destination after completing the prison term for passport fraud remains very up in the air. The US and South Korea seek to extradite him, and he will face prosecution that could translate to decades behind bars in both countries.
Considering the above, the SEC moved in the alternative to preclude the defendants from using a declaration from Kwon on summary judgment.
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