The Terra Luna Classic community has approved a proposal to burn 800 million USTC. The proposal, put forth by a prominent member of the LUNC community known as Vegas, suggested blacklisting the Ozone Protocol wallet that contained 800 million USTC, effectively freezing the tokens instead of destroying them without proper authorization. This decision has had an immediate impact on prices.
The proposal received 54.07% “Yes” votes, with 30.51% voting “No.” There were also 13.39% “No with veto” votes and 2.03% “Abstain” votes. The community was divided on whether freezing the wallet was the right course of action, as it could potentially delay the burn process significantly.
Out of the 52 validators who participated in the voting, 21 were in favor of the proposal, 21 voted against it, and some popular validators, including Hexxagon, LuncLive, LuncGoblins, and Solidvote, chose to abstain from voting. Some in the community argue that directly changing the blockchain state and destroying funds goes against the ethos of blockchain, and blacklisting allows for a reversible action if valid reasons are provided by the wallet owners.
Community Divided Over Terra Luna Classic’s 800 Million USTC Burn
The Terra Luna Classic community had previously passed proposals to approve the 800 million USTC burn, but attempts to persuade the wallet owners to transfer the funds to the community pool or burn them directly through diplomacy had failed. The L1 development team will now implement the blacklisting process.
As a result of this decision, the price of LUNC has seen a 1% increase in the past 24 hours, currently trading at $0.000056. The USTC price, on the other hand, is trading at $0.011 and has remained relatively stable over the past 24 hours.
This move to burn 800 million USTC is seen as significant for the USTC repeg and the revival of LUNC, which has been facing challenges and price fluctuations in the broader crypto market.