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The Terra Traditional group has voted to stop all minting and reminting actions associated to TerraUSD Traditional (USTC) to reestablish a secure peg between USTC and the US greenback.
In a latest proposal, the group voted 59% in favor of discontinuing the minting of USTC, whereas roughly 40% opposed the change.
The transfer goals to safeguard the pursuits of each the group and exterior traders by lowering the availability of USTC, contributing to the aim of a repeg to the U.S. greenback.
In Could 2022, USTC depegged from the U.S. greenback. Subsequently, it induced Terra to expertise a catastrophic collapse, with Luna Traditional (LUNC) carefully tied to USTC.
LUNC’s worth plummeted by almost 100%, setting off a broader downturn in the crypto markets, resulting in the loss of approximately $40 billion in total market capitalization.
The proposal stated that it would lead major crypto exchanges to burn USTC.
“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the statement noted.
Related: Lack of stablecoin regulation could push issuers out of US — Austin Campbell
This comes after studies that the Terra Traditional community is concerned about an uptick in spam following a decline in LUNC costs.
On Sept. 10, Cointelegraph reported that the group is voting on a number of proposals, a kind of being to lift the minimal deposit requirement from 1 million LUNC to five million LUNC.
The proposal ended on Sept. 16, with 93.22% in favor of accelerating the minimal deposit requirement quantity.
Journal: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in
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