LUNC News: Optimism Grows as USTC Burn Proposal Gains Approval
The Terra Luna Classic ecosystem has agreed to burn over 46 million USTC.
These funds belong to Mirror Protocol and are part of Terraform Labs’ winding down requirements.
Lunc community has successfully passed a vote on a TerraClassicUSD (USTC) burn proposal, fueling optimism in the ecosystem. This proposal follows Terraform Labs’ recent decision to wind down operations and burn remaining assets.
Details of the USTC Burn Proposal
Blockchain researcher Collin Brown disclosed that the USTC burn proposal aims to remove 46.55 million USTC tokens from circulation through contract migration.
The proposal was introduced for the second time after the first attempt failed during on-chain execution due to insufficient USTC contract balance. The contracts were, however, removed from this proposal to ensure proper execution, indicating the community’s dedication to the initiative. Community members voted 33.9% in favor of the proposal, 1.3% against it, 36.46% veto, and 28.25% abstained.
Meanwhile, the USTC token burn focuses on wallets linked to the Mirror Protocol. This funds have been inactive since the May 2022 crash of USTC However, Terraform Labs is required to destroy all wallets holding Terra Classic tokens as part of its wind-down proceedings. Notably, the funds associated with Mirror Protocol are native assets of USTC and LUNC.
USTC and LUNC Skyrockets on 46.55M Burn Proposal Approval
Following the token burn approval announcement, USTC’s price experienced a 2.2% increase over 24 hours.
This rekindled optimism about USTC reaching its December $0.06 level. However, the price stabilized at around $0.018 as of this writing. Additionally, USTC’s trading volume spiked 25% in the past day to $8.6 million.
Beyond the USTC rally, the LUNC token gained a 2.3% uptick in the last 24 hours, with the price exchanging hands at $0.00009095. LUNC’s trading volume has surged 25.8% in the last 24 hours to $27.7 million.
