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HomeCrypto NewsMarketCritical USTC Proposal Surfaces in Terra Classic (LUNC) Community 

Critical USTC Proposal Surfaces in Terra Classic (LUNC) Community 


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A Terra Classic community member has submitted a critical proposal to burn 640 million USTC, triggering reactions from LUNC proponents. 

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The revitalization of the USTC stablecoin has remained a top priority for the Terra Classic community. Accordingly, diverse revival plans have been introduced by different community members. Afzal submitted the latest USTC revitalization proposal on Wednesday. 

The Burn and Build validator owner Levi, drew attention to this vital proposal today. The update showed that Afzal believes burning a large chunk of USTC would greatly benefit the LUNC community. Likewise, he recommended channeling millions of USTC to the community pool. 

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Labeled Prop 22671, the proposal concerns 800 million USTC tokens at the community’s disposal. To this end, the notable validator operator Afzal suggested that 80% of the 800 million USTC be incinerated. He further recommended that 20% of the USTC supply be sent to the community pool.

Notably, voting on this vital proposal has begun. If Prop 22671 passes, the 800 million USTC in question would be split at 80% to 20%. In other words, 640 million USTC tokens would be taken out of circulation forever, while 160 million USTC would be sent to the Terra Classic community spend pool.

LUNC Community Reactions

While Prop 22671 is yet to be passed, community members have reacted positively to Afzal’s proposal. Among those excited about the proposal is Levi. While updating about the development, the Burn and Build Terra Classic validator operator conveyed his support. “I’m voting yes,” he remarked.

However, most community members said all 800 million USTC tokens should be burnt. According to James Bond, adding more USTC to circulation would harm the repeg plans. “Any USTC going into circulation will drop the price and harm the repeg,” Bond noted

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Another LUNC proponent, Marsupial Gamer, shared the same view but proposed the idea of sending a lower volume to the community pool. “I would have gone 90-10,” he submitted

It bears noting that the USTC Quant Team has made significant progress regarding the repegging of the stablecoin. As reported by The Crypto Basic, the team initiated a direct line of communication with Binance last month to further the recently-passed USTC repeg proposal. 

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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.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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