There was a major movement in the altcoin market that attracted attention. The Terra Classic community has made an important decision regarding the mintage of its native tokens.
Terra Classic decided to stop USTC printing
The altcoin community has made a historic decision to end USTC issuance. A large portion of the community voted in favor of halting the printing and re-mining of TerraClassicUSD (USTC). This reveals the aim of restoring parity with the dollar by burning tokens.
After much debate, 59% of the community called for USTC printing to be discontinued. This shows that almost two-thirds of the community is in favor of the change. However, approximately 40% do not favor this change. This shows that they are aware that the strategy put forward to implement the decision carries some risks. As Kriptokoin.com, we included the details of the voting that the altcoin project started last week in this article.
USTC’s break from the dollar and its consequences
The breakage of USTC’s dollar link in May 2022 had a huge shock effect on the altcoin community. Immediately after this, Terra suffered a major decline due to LUNC’s tight connection to USTC. The LUNC value dropped by almost 100%. This led to a widespread recession in altcoin markets. So much so that there was a total market value loss of approximately 40 billion dollars.
Crypto exchanges’ reaction and next steps
Such radical changes will have a huge impact on altcoin exchanges. It is a matter of great curiosity how the major exchanges, in particular, will handle the USTC elimination process. “This offering opens the door for giant institutions like Binance to start burning USTC knowing that minting and re-minting is over,” reads a statement.
📊 #LuncCommunity votes show divided opinions: 41.11% support #proposal11785, while 57.02% abstain. #11786 sees 47.32% in favor and 44.34% against. It's a tug-of-war for #Lunc's future.
— Crypto.Anu🌐🪬 (@CryptoAnu_) September 20, 2023
Drop in LUNC prices and concerns of altcoin investors
The decline in Luna Classic (LUNC) prices mobilized the Terra Classic community. There are especially great concerns about the increase in spam attacks. On September 10, we reported that the community voted on a proposal to increase the minimum deposit requirement from 1 million LUNC to 5 million LUNC. The voting process ended on September 16. In this vote, 93.22% of the votes were received in favor of increasing the minimum deposit amount.
These events show how responsible the altcoin community is for the future of the platform and tread carefully when making big decisions. It will be interesting to see what impact such votes and decisions will have on Terra Classic and other altcoin projects in the future.
In summary, the community wants to stop the printing and re-printing of TerraClassicUSD (USTC). Altcoin investors also strongly support burning tokens to restore the US dollar peg.
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