The community behind Terra Luna Classic recently approved a proposal to burn a whopping 800 million TerraClassicUSD (USTC). The tokens allotted for burning were initially earmarked for the Ozone Protocol. The burn proposal came just weeks after a previous one that sought to return the tokens in question to the community pool.
According to Terra’s governance forum, Proposal #11710 sought to directly burn the 800 million USTC by sending them to a designated burn address. The community approved the proposal with an overwhelming majority, having virtually no opposition. The proposal didn’t face any abstentions but did get two veto votes.
The prices of the tokens associated with Terra witnessed a considerable hike following the approval of proposal #11710. TerraClassicUSD (USTC) gained more than 8% in the hours following the approval. Additionally, the token’s daily trading volume surged by 28% to $15.5 million. Meanwhile, Terra Classic (LUNC) hiked by 2.7%.
The burn would initiate once the signatories of the Ozone Reserve Wallet send the allotted USTC to the Terra Luna Classic burn address. Proposal 11710 was in response to a previous proposal, #11658, that sought to return the 800 million USTC from the Ozone Wallet reserve to the Terra Luna Classic community.
Proposal #11658 was also approved by the community, which promoted proposal #11660 in order to burn the tokens headed for the Terra Luna Classic community. However, the latest approval of proposal #11710 rendered the previous ones ineffective. The majority of the validators who participated in the voting process of #11710 were in favor of burning the USTC tokens reserved for the Ozone Protocol.
The burning of the USTC tokens would provide a much-needed push to re-peg the token and promote the development of LUNC. The prices of USTC and LUNC have failed to display strong bullish momentum over the past few weeks.
