- Terra Luna Classic community proposes a legal route to burn 800 million USTC from the Risk Harbor Multisig Wallet to reinvigorate the ecosystem.
- The significant token burn aims to reduce supply and potentially replicate recent rallies, despite current price dips in LUNC and USTC.
A Resurgence Plan for Terra Luna Classic
The Terra Luna Classic community is currently considering a substantial move: burning 800 million USTC stablecoins. This initiative, proposed by a validator, seeks a legally viable method to execute the burn from the treasury, held in the Risk Harbor Multisig Wallet, and revive the ecosystem tokens.
Legal Viability and Execution Strategy
The validator, Lunanauts, highlighted legal concerns associated with proposal 11913, which targets burning the USTC in the Risk Harbor multisig wallet via an update to the Terrad client. They suggest a simplified contract approach to legally facilitate the burn, minimizing potential legal complications. This approach involves creating a contract with a MsgSend function to transfer holdings to a burn address and then migrating the multisig contract via governance.
Impact and Significance of the 800 Million USTC Burn
This proposed burn of 800 million USTC is seen as a crucial step towards reducing the token supply and rejuvenating the Terra ecosystem. Community-led efforts are underway to restore LUNC and repeg USTC, and this burn could provide the necessary momentum. Previous community-driven initiatives have led to significant rallies in LUNC and USTC prices, offering hope for a similar outcome.
Current Market Position and Future Prospects
Despite a recent dip in prices, with LUNC trading at $0.000171 and USTC at $0.0400, the community remains optimistic. The burn proposal aims to replicate the successes of past rallies, where LUNC and USTC experienced increases of 300% and 400%, respectively. The decrease in trading volume in the last 24 hours has heightened the focus on this strategic move.
Terra Luna Classic’s Road to Recovery
The Terra Luna Classic community’s proposal to burn 800 million USTC is a bold strategy aimed at revitalizing the ecosystem and stabilizing token prices. By addressing legal challenges and focusing on a methodical approach, this plan could mark a turning point in the recovery and growth of Terra Luna Classic, offering a beacon of hope to investors and enthusiasts alike.