Above 1 Billion UST burned or not? Community demand answers.
Some Terra investors are demanding evidence showing that TerraForm Labs indeed burnt nearly 1.4 billion USTC as demanded by the community.
Following the community’s decision to burn nearly 1.4 billion TerraUSD (UST), now renamed TerraClassicUSD (USTC), several investors are eager to know if the burn has occurred since the Terra team made an official announcement.
Community Supports USTC Burn
As reported, Terra’s proposal 1747, dubbed “Burn The Remaining UST in the Community Pool + Cross-Chain Liquidity Incentive UST 2,” passed with the vast majority of the votes supporting that TerraForm Labs (TFL) should burn the excess supply.
Out of the 154.5 million votes recorded, 153.6 million of these voters supported the proposal, indicating that the team behind the project should burn 1.38 billion USTC from the community pool and cross-chain liquidity incentive.
No Proof Yet Backing Community’s Demand
Meanwhile, despite most of the Terra community favoring the proposal, TFL has not provided proof that it has burnt the 1.4 billion USTC as decided by investors.
In a bid to get the Terra team to disclose its move toward implementing Proposal 1747, passed with over 153 million votes, a Redditor with the username u/After_Newspaper_1033 called on TFL to state whether it has conducted the burn as promised.
The user complained that no transaction details are available to prove that the nearly 1.4 billion USTC was burnt from the pool.
“What happened to the burn?? I don’t see anywhere a transaction that has burned 1 billion UST from the community pool,” u/After_Newspaper_1033 posted on Reddit.
The user suggested that if the Terra team does not disclose whether it has executed the 1.38 billion burns, the Terra community should raise awareness by liaising with top influencers on Twitter to get a response from TerraForm Labs.
“We need to reach out to FATMAN or other influencers on Twitter to raise our voice!” the aggrieved user added.
Community Reaction to the Call
Meanwhile, responding to the post, several Terra investors noted that burning 1.4 billion Terra burns will not contribute positively to the value of USTC since more of the tokens can be minted at any time.
A user claimed that the USTC burn took place last week, which prompted the price of the stablecoin to soar to $0.53 at the time before immediately plummeting back to $0.06.
Meanwhile, USTC is still far from its glory days when it was still pegged to the dollar. At the time of writing, USTC is trading at $0.03.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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