$LUNC Revival Bid: $8 Million USTC Reserved for Burning in Ambitious Wager
Key Points:
– The Terra Luna Classic community is proposing to burn a large amount of TerraClassicUSD (USTC) held in the community pool.
– VegasMorph, a leading validator within the community, suggests burning around 8 million USTC to bring about deflation within the ecosystem.
– This proposal comes after a previous suggestion to burn 800 million USTC was rejected due to legal concerns.
– The new proposal suggests using a smart contract to burn the 800 million USTC in the Risk Harbor multi-sig wallet, addressing the legal concerns raised by the validator group, Lunanauts.
– The market impact of these proposals is reflected in a decrease in LUNC and USTC prices, but an increase in trading volume as the community actively engages with the proposals.
In a surprising move, VegasMorph, a leading validator in the Terra Luna Classic community, has put forward a significant proposal to burn a substantial amount of TerraClassicUSD (USTC) held in the community pool. This bold action aims to create deflation within the Terra Luna Classic ecosystem, building upon VegasMorph’s previous suggestion to burn 800 million USTC from the Risk Harbor Multisig Wallet.
The proposal suggests burning approximately 8 million USTC, which is a significant portion of the 7.95 million USTC currently in the community pool. This proposal has been shared across various platforms and is confirmed by data from StakeBin. The idea behind this burn is to utilize surplus funds from the community pool, which currently holds a substantial reserve of 3.3 billion LUNC, more than enough for on-chain activities and other needs.
VegasMorph emphasized the importance of this action, stating, “By initiating this burn of USTC, we’re not only aligning with our deflationary goals but also showcasing our commitment to self-reliance and prudent management of community assets.”
This proposal comes amidst discussions about another significant proposal to burn 800 million USTC. The initial proposal was rejected due to legal concerns raised by the Terra Luna Classic validator group, Lunanauts. However, a new approach is being considered to find a legally secure method for the burn. The latest proposal suggests using a smart contract to burn the 800 million USTC in the Risk Harbor multi-sig wallet.
The urgency for finding a secure method increased when it was discovered that Risk Harbor had lost access to the wallet’s keys and decided to blacklist it. To carry out this burn, a core developer would create a contract to transfer all assets to a burn address. This contract would then be approved through governance, eliminating the need for validators to install any new code and reducing potential legal complications.
During the initial voting phase, the proposal received strong support with 96% in favor, although some voted against or abstained. The voting will conclude on December 27, and key validators are yet to vote.
In terms of market impact, there have been noticeable changes. The price of LUNC has decreased by 3% in the last day, currently trading at $0.000155. Similarly, USTC’s price has decreased to $0.0334, a 6% decrease from the previous day and a 15% decrease from the previous week. Despite these changes, trading volume has increased by 141% in the last 24 hours, reflecting the active involvement of the community in these proposals and the broader Terra Luna Classic ecosystem.