Terra Classic Community Votes to Halt Token Minting

The future of Terra Classic USD (USTC) tokens has just been decided upon by the Terra Classic community. The community held a week-long vote to decide the fate of these tokens more than a year after a significant fall that rocked the cryptocurrency markets. The result, which was in favor by about 59%, represents a turning point for Terra Classic.

Ending Minting Activities

The Terra Classic community decided to halt all minting operations following a week-long vote period that came to an end on September 21. A little less than 7% of the populace opted to abstain from voting, while about 40% of the population opposed the initiative.

The idea to stop minting was largely motivated by a desire to protect the community’s interests and those of outside investors who have been actively burning USTC tokens to accomplish a re-peg. The community made it clear that any type of minting would be in opposition to their common goals.

Terra’s Spectacular Collapse and Rebirth

The dramatic fall of the Terra UST stablecoin and the LUNA governance token over a year ago, which spread panic among token holders, served as the impetus for this choice. Due to the loss of their peg values, Terra’s market capitalization drastically decreased, and the stablecoin fell to about $0.13. Additionally, the value of LUNA plummeted to a mere cent.

Despite this calamity, the Terra Classic society arose as a distinct network from the ruins. This network made it possible for LUNA to be staked on its blockchain, revitalizing the Terra ecosystem. According to CoinMarketCap, LUNA’s market cap as of right now is slightly over $361 million.

Binance’s Support and the Latest Proposal

When Binance declared its support for a network update that will stop the re-minting of burned Terra Luna Classic (LUNC) tokens in January, Terra Classic saw a huge increase in value. With almost 96% of the network’s voters in favor of the update, it received a lot of support.

The Terra Classic community views the most recent proposal as a step toward allowing organizations like Binance to take part in burning USTC coins, knowing that minting and re-minting operations have ended.

This choice is based on burning, a procedure that permanently removes bitcoin tokens from circulation. It guarantees that tokens are delivered to a burn address, making them unreachable forever.

The cryptocurrency world is keenly watching Terra Classic as it makes these crucial decisions in order to observe how this chapter plays out for a network that has recovered from a serious crisis.