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

The Terra LUNA -1.91% Classic ( LUNC -0.072% ) 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. 

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.