The people at Terra Luna Classic decided to burn 800 million USTC, in order to reduce the price hike and increase the value of the currency.
What happened, Mayor?
* The folks at Terra Luna Classic agreed to transfer 800 million USTC from the protocol account to the burn address.
* The goal of this decision is to reduce the number of USTC available, in order to reduce high prices and increase the value of the currency.
* This decision comes after another proposal to permanently destroy 8 million USTC was rejected.
Why did they, mayor, take this decision?
* People at Terra Luna Classic are suffering from high prices due to printing large amounts of USTC to fund protocol projects.
* These high prices significantly reduced the value of USTC, and reduced people's desire to buy it.
* People at Terra Luna Classic believe that burning 800 million USTC will reduce price increases and encourage people to buy the currency.
Ok, what are the consequences of this decision, Mayor?
* It is expected that burning 800 million USTC will significantly reduce the number of available currencies, which will increase its scarcity. Take care.
* This can help increase the value of the USTC, and this is beneficial for people who suffer from the currency.
* But it is not clear yet that this decision will be sufficient to address high prices once and for all. And take a step forward
So, what will they do after that, Mayor?
* 800 million USTC will be transferred from the protocol account to the burning address 😢.
* After transferring the currency, it will be permanently burned, meaning it will be removed from circulation.
* It is expected that this decision will change the value of the USTC, or change Pampers, but it is not clear yet whether this change will be positive or negative ☕
Is this decision sufficient?
* It is not clear yet that this decision will be sufficient to address high prices once and for all.
*It will depend on many factors, such as:
The amount of USTC that will be printed in the future
People want to buy USTC
The effectiveness of other DeFi solutions to address high prices
Only time will tell, whether this decision will have a positive impact on Terra Luna Classic or not.
Do you have any questions about this decision?
Ask ☕
