On February 26, 2024, the Terra Luna Classic community approved the proposal to burn 800 million USDT tokens, leading to an impressive 11% surge in the USTC token price.  However, these significant decisions from the Terra Luna Classic community happened at a time when top cryptocurrencies like Bitcoin, Solana, Cardano, and many others were experiencing a price correction.

Why Terra Luna Classic (USTC) soar?

The Terra Luna Classic community approved Proposal 12073, which will allow the burning of a significant 800 million TerraClassicUSD (USTC) tokens, worth around $32 million, from the Risk Harbor multi-sig wallet. Before deciding on this massive proposal, members of the Terra Luna Classic community likely engaged in discussions, and debates, and exchanged opinions to carefully weigh the pros and cons of the proposal.

During the discussion regarding the proposal of burning 800 million USTC, it passed with 41% in favor, 33% not voted, and 18% voting “No,” while 8% of the community members opposed a “No with veto” stance. However, among the 58 validators, 42 voted in favor, 11 did not vote, and 5 opposed, with a significant refusal to vote from the validator Allnodes.

The burn execution involves migrating the specified USTC amount from Risk Harbor’s multi-sig wallet to a new code version through a contract migration proposal. This means a specific amount of USTC will be held in a wallet before significant burning. The migration handler will manage processes, including tax considerations, ensuring the blockchain’s state remains unchanged, as highlighted by former Joint L1 Task Force (L1TF) developer Fragwuerdig.

USTC price performance 

Initially, following this decision, the USTC price experienced a 25% surge, however, in the past few hours, the gain retraced. The community’s decision reflects a commitment to proposed methods and broader objectives outlined in proposals 11832, 11660, and 11710, highlighting a strategic approach to managing and utilizing the Terra Luna Classic ecosystem.

As of writing, TerraClassicUSD (USTC) is trading near $0.035, and in the last 24 hours, it experienced over 10% upside momentum. However, USTC also reached an intraday high of $0.041. If we look at the USDT performance over a longer period, in the last 7 days, it experienced over 7.5% of upside momentum, whereas, in the last 30 days, it witnessed over 34% of upside momentum.

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