- Terra Classic community proposes Binance burn 50% of USTC trading fees to help re-peg the stablecoin.
- Voting process for the proposal underway, with significant community support.
Ambitious Steps to Resurrect Terra Classic’s Prestige
In the dynamic realm of cryptocurrencies, stability and value retention remain paramount. Following the staggering collapse of Terra in May 2022, the Terra Classic community has been in relentless pursuit of solutions to restore their investments and reclaim the crypto project’s esteemed status.
The current discourse within the Terra Classic governance forum revolves around two compelling proposals. The spotlight is on proposal #11785, a strategic plan that endeavors to realign the depegged TerraClassicUSD (USTC) stablecoin with the US dollar. For the uninitiated, a stablecoin is typically pegged to a reserve like the US dollar, ensuring its value remains stable, unlike the volatile nature of many cryptocurrencies.
Binance, a leading figure in the cryptocurrency exchange world, already burns 50% of the trading fee it gathers from Terra Classic (LUNC) pairs. The new proposal ambitiously seeks to extend this provision, urging Binance to incinerate half of its trading fee from USTC trading pairs, specifically USTC/USDT and USTC/BUSD pairs. A testament to the proposal’s potential impact, these pairs recently recorded a combined trading volume of roughly $5 million in a single day.
The rationale behind this audacious proposal? By burning a segment of the USTC supply on Binance, it is surmised that the stablecoin’s journey to re-pegging will be accelerated, subsequently augmenting the value of LUNC. The ripple effect of such a maneuver could be profound. Other exchanges might be galvanized to follow suit, bringing forth monumental advantages for investors holding either USTC or LUNC.
As the voting process unfolds, 40.74% of the voters are currently in favor of Binance initiating a USTC burn program. Yet, a significant 57% have chosen to abstain, leaving the future of this proposal tantalizingly uncertain.
Parallel to this, proposal #11786 is gathering momentum, vying to constrain USTC minting. This proposal emphasizes a community-centric approach, ensuring any USTC minting proposal is subjected to community voting. This step aims to seal any potential breaches that might surge the stablecoin’s supply.
The combined efforts of the Terra Classic community underscore their unyielding spirit and determination. As the stablecoin currently trades at a mere $0.012, reflecting a modest 1% increase over the last day, these ambitious plans signal a community-driven resolve to reinstate the coin’s legacy.
