Community Accepts Terra Luna’s Proposal to Stop Minting USTC

• The Terra Classic ecosystem submitted a proposal to stop minting and reminting USTC.
• USTC, LUNC, and LUNA showcased substantial hikes following the proposal.
• The ecosystem envisions the re-pegging of USTC to US dollars.

The Terra Classic tokens have been creating ripples in the crypto market over the past few days, with substantial price surges following the ecosystem’s proposal to disable USTC minting. The proposal, which goes by the title “Fulfill prop #11784 by disabling USTC minting by raising Tobin tax to 100%,” intends to stop minting and reminting USTC.

Since the fall of Do Kwon’s Terraform Labs in 2022, the community has been working to rebuild it to its former strength. With the fall of the platform, its tokens, including LUNA, USTC, and LUNC, experienced major dips, with USTC depegged from the US Dollar, which in turn led to the fall of LUNA by almost 100%.

Following the Terra-Luna crises, the platform disabled the mechanism of minting and reminting USTC. As per reports, the only UST minting currently facilitated is “through the market module, which allows burning a coin to mint another”. 

The proposal focuses on preventing users from swapping between USTC and other stablecoins. In addition, the platform will also disable USTC burn with swaps, which ultimately envisions the repegging of the stablecoin. However, the proposal excludes swapping coins through decentralized exchanges (DEXs) like Terraswap.

Despite a 24-hour decline of 4.04%, LUNC, currently trading at $0.00007934, exhibited a remarkable increase of 17.42% over the last 7 days.

Similarly, LUNA, trading at $0.7444 at present, showcased a surge of 67.19% in one week, despite a daily decline of 6.03%. At the same time, TerraClassicUSD, or USTC, experienced a marginal 3.69% dip in the last 24 hours, with the current price standing at $0.01351. Nonetheless, on a weekly basis, the stablecoin boasts a hike of 14.83%.