The Terra Classic community led by the L1 Task Force (L1TF) and network validators have continued to devise ways to restore USTC to its dollar peg. As part of their endeavors, they recently introduced a new proposal, which is currently undergoing voting.
Latest Proposal Involves Plan To Burn 800 Million USTC
The latest proposal (Proposal 11927) involves plans by the community to burn 800 million USTC tokens in a “legally absolved route.” The proposed funds to be burned happen to come from the Luna Classic treasury, held in the Risk Harbor Multisig Wallet.
The idea to burn these funds arose from the fact that Risk Harbour admitted that they had lost the keys to the Multisig wallet. As a result of this, they had agreed to blacklist the wallet. However, the community opined that burning these tokens is an even better option, considering how burning such a significant amount of USTC could potentially increase the token’s value.
Before now, the community had initially proposed to burn the 800 Million USTC Burn via Update to Terrad Client. However, the proposal wasn’t passed as many validators chose not to vote. LUNC validator Lunanauts mentioned that the validators he had spoken to chose not to vote because of the possible legal repercussions of updating the code on their nodes to burn the funds.
That is also why this latest proposal was introduced as an alternative, as there will be no need for validators to update the code on their nodes for the burn to occur. Lunanauts possibly believes that this proposal should easily scale through, considering that validators are “legally absolved” through this route. It also achieves the same effect as the initial proposal.
USTC still trading well below dollar peg | Source: USTC/USDT on Tradingview.com
Validators Still Apathetic
The LUNC validators still seem apathetic to the latest proposal based on how voting has progressed so far. Data from the voting forum shows that only a meager 8.67% of total votes have been cast. Interestingly, 48.31 % of the total votes cast so far have chosen to “abstain,” which means they are neither voting for nor against.
The good news for the Terra Classic community is the fact that there is still time for the proposal to meet the pass threshold, as voting ends on December 27. It is also worth mentioning that only 5.63% have voted “No,” which is also a good sign considering that 50% represents the pass threshold. However, the quorum of 40% total votes still needs to be met.
At the time of writing, USTC is trading at around $0.034, up almost 2% in the last 24 hours, according to data from CoinMarketCap.