The Terra Luna Classic community has unanimously approved a proposal to disable USTC minting and raise the Tobin tax to 100%. The community and developers are actively working on various initiatives to restore the peg of USTC. This move will contribute to revitalising the Terra Luna Classic chain and the LUNC token.
The market has witnessed a notable rally in the last 48 hours in response to these developments. The impact was seen on LUNC, USTC and the native token, LUNA. This surge underlines Terra Luna Classic’s positive market sentiment as the community actively takes measures to fortify and revitalise its blockchain network.
Terra Luna Classic Community Halts USTC Minting
Proposal 11868 “Fulfill prop #11784 by disabling USTC minting via raising Tobin tax to 100%” aimed at stopping the minting and reminting of USTC.
“The only minting of USTC currently happening on chain is through the market module, which allows burning a coin to mint another.”
Following the 2022 Terra-LUNA crisis, a mechanism was implemented to disable swapping to and from LUNC via the market module. This effectively halts all market swapping and coin minting on Terra Classic. Also, users will be prevented from swapping between USTC and other stablecoins, consequently disabling USTC burn through swaps.
It’s important to note that this proposal does not impact coin swapping through DEXes like Terraswap, which remains unaffected for existing pairs.
The proposal garnered overwhelming support, receiving 98.95% of votes in favour, with significant backing from top validators. Among the 55 validators who participated, 50 voted “Yes,” marking a notable consensus. This includes support from validators such as Allnodes, Interstellar Lounge, HappyCattyCrypto, Interstake One, and JESUSisLORD, making it the first proposal in months to achieve unanimous support from validators.
Terra Ecosystem Tokens Surge
In the last 24 hours, LUNC has witnessed an 18% surge, reaching a current trading price of $0.000084. The price fluctuated between $0.0000703 and $0.0000963 during this period. Notably, the trading volume surged 300%, reflecting heightened trader interest.
USTC is priced at $0.014, marking a 15% increase in the past 24 hours. The price ranged between $0.012 and $0.017, accompanied by a significant boost in trading volume.
LUNA experienced a substantial 33% increase in the past 24 hours, currently trading at $0.73. The price fluctuated between $0.55 and $0.87 during this period. Like LUNC, LUNA’s trading volume surged 300%, signalling increased trader engagement.