The Terra Classic community has been focusing on reviving the USTC stablecoin, and various plans have been proposed by different community members. Recently, on Wednesday, Afzal submitted the latest USTC revitalization proposal.
Today, Levi, the owner of the Burn and Build validator, highlighted the significance of this proposal. According to the update, Afzal believes that burning a substantial amount of USTC would be highly advantageous for the LUNC community. Additionally, he suggested redirecting millions of USTC to the community pool.
Proposal 22671, also known as Prop 22671, is centered around the 800 million USTC tokens currently available to the Terra Classic community. Afzal, a prominent validator operator, has put forward a recommendation for this proposal. He suggests that 80% of the 800 million USTC should be burned, removing them permanently from circulation.
Additionally, Afzal proposes that the remaining 20% of the USTC supply, which amounts to 160 million USTC tokens, should be allocated to the Terra Classic community spend pool.
Voting has commenced on this crucial proposal, and if it passes, the 800 million USTC tokens would be divided as per Afzal’s suggestion, with 640 million USTC being incinerated and 160 million USTC being directed to the community spend pool.
Related Reading: Can Terra Classic Make a Comeback After Falling 6.89% in the Past 30 Days?
Mixed Reactions From LUNC Community
Afzal’s proposal, Prop 22671, has received a positive response from the Terra Classic community, including support from Burn and Build Terra Classic validator operator, Levi. Expressing his excitement about the development, Levi shared his endorsement of the proposal, stating, “I’m voting yes.”
Most community members expressed their preference for burning all 800 million USTC tokens. James Bond, a member of the community, emphasized that introducing more USTC into circulation would negatively impact the repeg plans. He believed that any USTC entering circulation would cause a drop in the price and disrupt the repeg process.
Another supporter of LUNC, Marsupial Gamer, shared the same view but suggested a compromise of sending a lower volume of USTC to the community pool. He proposed a split of 90-10, meaning 90% of the tokens would be burnt, and only 10% would be allocated to the community pool.
Notably, the USTC Quant Team has made significant progress in terms of repegging the stablecoin. They established direct communication with Binance last month to advance the recently-passed USTC repeg proposal, as reported by Fxcryptonews.
