Terra Classic community votes to stop minting Terra Classic USD (USTC)

Quick Take

  • The Terra Classic community has voted to stop all minting of Terra Classic USD, the algorithmic stablecoin that brought down Terra last May.

The Terra LUNA + Classic ( LUNC + ) community has voted to stop all minting and reminting of Terra Classic USD, the algorithmic stablecoin formerly known as UST that was at the center of the Terra ecosystem’s $45 billion collapse. 

Terra allowed users to freely swap between UST and LUNA, its companion cryptocurrency. However, when UST de-pegged in May 2022, the mechanism failed in dramatic fashion as trillions of LUNA tokens were minted and the price of UST fell below one cent. 

A proposal to finally halt that swapping mechanism, which aims to protect "the community and outside investors who are burning USTC helping to achieve the repeg,” passed with 59% approval. 


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The Terra Classic community hopes to eventually help the coin regain its original $1 peg by burning those trillions of tokens that were created during its collapse. So far, the community has managed to burn only 75 billion tokens, around 1% of the nearly 6 trillion circulating tokens, according to LUNC Metrics. The current value of USTC is $0.012.

Following the collapse of the Terra ecosystem, Terraform Labs co-founder Do Kwon launched a new version of the blockchain, commonly known as Terra 2.0, while the Terra Classic community stood by the original blockchain. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].


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