- Terra Classic Community votes to stop the minting and reminting of USTC tokens.
- One year after the traffic crash of the Terra ecosystem, its rebranded network continues to thrive.
A year after the collapse of TerraLuna, the Terra Classic Community has voted to halt the minting and reminting of Terra Classic USD (USTC).
The voting, which ended on September 21st, lasted for one week, with 59% of the community in favor of ending all minting activities, while 40% voted against the idea.
“This proposal protects the community and outside investors who are burning USTC, helping to achieve the repeg. Any form of minting or reminting goes completely against any community effort. Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the proposal reads.
Terra Classic’s Emergence as an Independent Blockchain after The Fall of Terra Ecosystem
Terra Classic is the main network created by TerraForm Labs. Terra Classic arose from the ashes of Terra Luna into a new ecosystem devoid of the chaos of the failed blockchain. Terra Luna Classic is the native token of the original Terra ecosystem under the name LUNA. Before the TerraLuna ecosystem crashed last year, LUNA was interdependent on TerraUSD (UST), a stablecoin. TerraUSD(UST) depegged due to price reduction leading to the biggest market disruption. The price of both LUNA and TerraUSD(UST) plummeted heavily after TerraUSD(UST) lost 95% of its value. The community tried to save the blockchain by selling $1.5 worth of Bitcoin, but the ecosystem was beyond saving.
After the collapse of the TerraLuna platform, the community created a new token named Terra Luna and changed the original native token of the crashed ecosystem to Terra Luna Classic. The original network that collapsed last year was also rebranded as Terra Classic.
Terra Classic continued as an independent blockchain, not as the forked version of the failed ecosystem. The forked version of Terra blockchain is known as Terra 2.0, a community-led blockchain platform solely focused on decentralized applications.
Despite the circumstances surrounding its emergence, Terra Luna continued as an independent blockchain with an estimated market capitalization worth over $361 million, according to CoinGecko.
In January, the Terra Classic ecosystem received a significant boost when Binance promised to support an upgrade to the network that would halt the reminting of burnt Terra Luna Classic (LUNC) tokens. The proposal garnered massive support from the community, with 96% in favor of the upgrade.
The second leg of the proposal was focused on increasing the network’s gas fees by 500% to fund the community’s oracle pool and to increase staking rewards. The proposal was supported by 90% of Yes votes. The price of LUNC increased by 6% for two weeks after Binance made the announcement.
According to Coingecko, 26% of LUNC trading volume is from Binance accounts. In its latest proposal, the majority of the Terra Classic community has voted to end all minting activities of the USTC tokens.