Terra Classic Community Urges Binance to Burn USTC Fees for Stability
The post Terra Classic Community Urges Binance to Burn USTC Fees for Stability appeared first on Coinpedia Fintech News
Following the unsettling collapse of Terra in May 2022, the Terra Classic community is debating a new proposal aimed at restoring stability to its TerraClassicUSD (USTC) stablecoin. Central to the discussion is a proposition that nudges Binance, the world’s largest cryptocurrency exchange, to burn 50% of its USTC trading fees. This development adds another layer to the dramatic efforts to resurrect a project that once had a prominent standing in the crypto-verse.
Two closely related proposals have been put forth on the Terra Classic governance forum, and they’re drawing significant attention from the community.
Proposal #11785: Binance Burn Program for USTC
The first proposal, aptly tagged as #11785, primarily focuses on getting Binance to extend its existing fee-burning mechanism to USTC trading pairs. The exchange currently burns 50% of its trading fees from Terra Classic (LUNC) pairs and, if the proposal is accepted, it would be a massive win for the struggling USTC stablecoin. Binance offers trading pairs like USTC/USDT and USTC/BUSD, which collectively saw a trading volume of approximately $5 million in the last 24 hours.
The logic is straightforward: if the most influential crypto exchange burns a portion of the USTC supply, it would likely bolster efforts to re-peg the stablecoin to the US dollar and possibly rejuvenate the value of its counterpart, LUNC.
Proposal #11786: Limiting USTC Minting
Running parallel to the first proposal is another initiative (#11786) aiming to limit the minting of USTC. This is aimed at closing loopholes that facilitate unwarranted expansion in USTC’s supply. Here, the community wants to have a say in any future minting activities, thereby guarding against the arbitrary creation of the stablecoin.
The Voting Landscape
As of now, the proposals have polarized the community. Proposal #11785 has garnered 41.11% favorable votes, while a sizable 57.02% abstained, and a minuscule 1.73% voted against it. The proposal for limiting USTC minting is in a fierce battle as well, with 47.32% in favor and 44.34% against. It’s a tug-of-war, and every vote counts.
The proposals don’t just represent mere governance changes; they embody the community’s ambitions and its resilience in the face of adversity. Meanwhile, USTC currently trades at a mere $0.012, a long way off from its intended peg to the US dollar. Only time will tell if these proposals can inject the much-needed stability and vitality into the Terra Classic ecosystem.
Filed under: Bitcoin - @ September 19, 2023 11:13 am