The Terra Classic community has voted to cease all minting and reminting activities related to TerraUSD Classic (USTC) to reestablish a stable peg between USTC and the United States dollar.
In a recent proposal, the community voted 59% in favor of discontinuing the minting of USTC, while approximately 40% opposed the change.
The move aims to safeguard the interests of both the community and external investors by reducing the supply of USTC, contributing to the goal of a repeg to the U.S. dollar.
In May 2022, USTC depegged from the U.S. dollar. Subsequently, it caused Terra to experience a catastrophic collapse, with Luna Classic (LUNC) closely tied to USTC.
LUNC’s value plummeted by nearly 100%, setting off a broader downturn in the crypto markets, resulting in the loss of approximately $40 billion in total market capitalization.
The proposal stated that it would lead major crypto exchanges to burn USTC.
“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the statement noted.
Related: Lack of stablecoin regulation could push issuers out of US — Austin Campbell
This comes after reports that the Terra Classic community is concerned about an uptick in spam following a decline in LUNC prices.
On Sept. 10, Cointelegraph reported that the community is voting on multiple proposals, one of those being to raise the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The proposal ended on Sept. 16, with 93.22% in favor of increasing the minimum deposit requirement amount.
Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in
