A Terra Classic community member has submitted a critical proposal to burn 640 million USTC, triggering reactions from LUNC proponents.
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.
$LUNC community, an important proposal has come to light!
80% of the 800 million $USTC burned and 20% of the 800 million $USTC to the community pool (prop 11671)
This is the best middle ground that benefits both the community and the developers.
I'm voting yes! pic.twitter.com/njCWmTh3xm
— Levi (@LeviRietveld) August 3, 2023
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.
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.
