The Terra Classic community has passed a majority decision to pause the creation and regeneration of the TerraUSD Classic (USTC) token with the goal of restoring a stable connection to the US dollar, protecting community and investor interests. external investment by reducing the supply of USTC. This decision has the support of 59% of the community and opposition of 41%.
In May 2022, the USTC matched the US dollar, severely impacting Terra, especially Luna Classic (LUNC), which is tied to the USTC. LUNC dropped in price by nearly 100%, causing a massive decline in the cryptocurrency market and a loss of market capitalization of around $40 billion.
The decision also puts the expected destruction of USTC tokens on major exchanges and opens the door to destruction of USTC by organizations like Binance once minting and re-minting operations stop.
This action addresses concerns in the Terra Classic community about spam following the decline in LUNC's price.
Furthermore, on September 10, the community voted on several proposals, including one to increase the minimum deposit requirement from 1 million LUNC to 5 million LUNC. This vote ended on September 16 with strong support of 93.22% for increasing the minimum deposit requirement
