Terra Luna Classic Community Close To Burn 800 Million USTC

The Terra Luna Classic community has officially passed the proposal related to burning 800 million USTC. The proposal by popular LUNC community member Vegas proposed to blacklist Ozone Protocol wallet containing 800 million USTC, freezing the tokens rather than destroying them without authorization. Traders reacted immediately to the proposal’s passing, increasing prices.

Terra Luna Classic Community Passes 800 Million USTC Burn Proposal

Proposal 11832 “Proposal to blacklist wallet TERRA1QYW695VAXJ7JL6S4U564C6XKFE59KERCG0H88W” has surpassed the “pass threshold” after top validator Allnodes voted “Yes” to the proposal.

The proposal received 54.07% “Yes” votes, while 30.51% decided to vote “No.” It also received 13.39% No with veto and 2.03% Abstain votes. The community is unclear on whether freezing the wallet is the right thing as this may significantly delay the burn.

Among 52 validators that participated in the voting, 21 favored the proposal and 21 voted No and No with veto. It is a major proposal and that’s why some popular validator such as Hexxagon, LuncLive, LuncGoblins, and Solidvote chooses to vote “Abstain.”

“Directly changing the blockchain state and destroying funds goes against blockchain ethos. Blacklisting allows for a reversible action, enabling fund recovery through governance if valid reasons are provided by the wallet owners.”

The community earlier passed proposals to approve 800 million USTC burn, but the idea to use diplomacy to persuade the wallet owners to transfer to the community pool or burn the funds directly has failed. The L1 development team will promptly implement the blacklisting process now.

Read More: Terraform Labs Reveal Who Was Behind the UST Depeg and $40 Billion Collapse

LUNC Price Rises

LUNC and USTC prices are recovering from the recent selloff in the broader crypto market. The 800 million USTC burn is significant for the USTC repeg and revival of LUNC.

LUNC price jumped 1% in the past 24 hours, with the price currently trading at $0.000056. The 24-hour low and high are $0.0000556 and $0.0000574, respectively. However, the price is still trading below the support level.

Meanwhile, USTC price trades at $0.011, moving sideways in the past 24 hours. The 24-hour low and high are $0.0109 and $0.0111, respectively.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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