Burn the Remaining Terra USD (UST) Voting Ends as 99% of Votes Favor the Proposal.
The Terra community is in support of the proposal to burn the excess UST in circulation.
TerraForm Labs has announced that voting for its proposal to burn the excess TerraUSD Classic (USTC) has been concluded.
Proposal 1747 named “Burn The Remaining UST in the Community Pool + Cross-Chain Liquidity Incentive UST 2” was submitted seven days ago in Terra Station to determine the best approach to make UST investors whole.
Result of Users’ Votes
Since the proposal was submitted, over 153.64 million votes have been made by Terra community members, with the vast majority of participants voting in support of the proposal.
According to data on Terra Station, out of the more than 154.5 million votes recorded so far, 99% representing approximately 153.64 million of the total votes are in favor of the proposal, while 5,491 votes are not in support.
With voting for the proposal ended, Terra will implement the community’s decision by burning the remaining UST in the community pool as well as the stablecoin in the cross-chain and liquidity incentive protocol.
The Terra community has passed the proposal to burn 1.388 billion UST held in the community pool, of which there are about 1.017 billion UST in the community pool and about 370 million in Ethereum, and the burning amount accounts for 11% of the total UST.
The move by Terra is part of efforts by the Terra team to regain the stablecoin’s peg to the United States Dollar, to make investors whole again.
Since it is likely that Terra will burn its excess USTC reserve to boost the stablecoin’s value, investors seem excited as seen in the value of the cryptocurrency.
Previous Plan to Burn UST Failed
Recall that the previous proposal to burn the excess UST supply did not go as planned, as the team reported that the proposal encountered technical issues along the way.
Despite the vote passing, the proposal failed to execute due to a technical glitch.
“Terra can’t make it ‘disappear’ – the vote passed and was executed automatically by the system. However, the execution failed due to an incorrect parameter (a malformed proposal that was not caught by the proposer),” Will Chen, Terra’s Building Developer said.
Meanwhile, Terra’s proposal to create a new chain for LUNA without the algorithmic stablecoin also passed, with the rebirth of the network expected to go live tomorrow.
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