The Terra Classic Community Voted To End The USTC Mint A Year After The Ecosystem Collapsed
In hopes of restoring USTC's value, 59% of the Terra Classic community's votes were cast in favor of ending the stablecoin mint. Meanwhile, the SEC has expressed a desire to depose Do Kwon, the project's founder.
The collapse of the Terra ecosystem triggered a chain reaction in the cryptocurrency market more than a year ago. As a result, the crypto space has been plunged into darkness, and the consequences will be evident for a while longer. Recently, the community of the collapsed stablecoin USTC held a week-long vote that resulted in a decision to stop mint and remint the token. 59% voted in favor of the termination, 40% voted against it, and only 7% abstained from the decision.
The decision was made in defense of the community and investors. In its announcement, the community also pointed out that the proposal eliminates loopholes such as converting xUST to USTC mint. Therefore, the community hopes to speed up the process of burning yet another token of the project, LUNC, to restore the value of USTC.
So far, only 74.91 billion LUNCs have been burned. Given that the circulating supply is at 5.82 trillion tokens, the community's latest decision is unlikely to bring the required result.
The community vote coincided with another event in the ecosystem. The U.S. Securities and Exchange Commission has filed a motion seeking to depose Do Kwon. Kwon is currently in custody in Montenegro and awaiting trial. It is unclear where the trial will take place, as both the U.S. and South Korea are seeking extradition. In any case, he faces a long prison term.
