The Terra Classic community has voted to cease all minting and reminting activities related to TerraClassic USD (USTC), with the goal of reestablishing a stable peg between USTC and the US dollar.
In a recent proposalthe community voted 59% in favor of suspending USTC minting, while approximately 40% opposed the change.
The measure aims to safeguard the interests of both the community and external investors by reducing the supply of USTC, thus contributing to the goal of a repeg.
In May 2022, the USTC decoupled from the US dollar. It subsequently caused Terra to experience a catastrophic decline, as Luna Classic (LUNC) was closely tied to USTC.
The value of LUNC plummeted by almost 100%, triggering a broader recession in 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 start burning USTC.
"Most importantly, this proposal opens the door for institutions like Binance to begin burning USTC knowing that minting and reminting have ended," the statement said.
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This comes after reports that the Terra Classic the community is worried about an increase in spam following the drop in LUNC prices.
On September 10, Cointelegraph reported that the community is voting on multiple proposals, one of which is to increase the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The proposal ended on September 16, with 93.22% in favor of increasing the minimum deposit amount required.
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