Terra Luna Classic, a fork of the Terra blockchain, has passed a key proposal to stop the minting of its stablecoin USTC, which has been trading below its target value of $1. The move is expected to help the recovery of the Terra Luna Classic chain and its native token, LUNC, which have both suffered from the 2022 Terra-LUNA crisis. LUNC, USTC, and LUNA, the original Terra token, have all witnessed a massive rally in the last 48 hours.
Proposal 11868: Raising Tobin tax to 100%
The proposal, titled “Fulfill prop #11784 by disabling USTC minting via raising Tobin tax to 100%”, aimed at stopping the minting and reminting of USTC through the market module, which allows burning a coin to mint another.
After the 2022 Terra-LUNA crisis, the mechanism was disabled, preventing swapping from and to LUNC through the market module. This will effectively disable all market swapping and such minting of coins on Terra Classic.
Users will not be able to swap between USTC and other stablecoins, which will also disable USTC burn with swaps.
The proposal will not impact swapping coins through DEXes like Terraswap. This continues to be possible for existing pairs.
The proposal received 98.95% votes in favor, with majority support from top validators. Among the 55 validators who voted, 50 voted “Yes”.
This includes validators such as Allnodes, Interstellar Lounge, HappyCattyCrypto, Interstake One, JESUSisLORD, and others, becoming the first proposal to receive unanimous support from validators in months.
LUNC, USTC, and LUNA prices soar
The passage of the proposal has boosted the confidence of the Terra Luna Classic community and investors, who are hopeful that the repegging of USTC will ultimately help the revival of the Terra Luna Classic chain and LUNC token. LUNC, USTC, and even LUNA witnessed a rally in the last 48 hours.
LUNC price jumped 18% in the past 24 hours, with the price currently trading at $0.000084.
The 24-hour low and high are $0.0000703 and $0.0000963, respectively. Furthermore, the trading volume has increased by 300% in the last 24 hours, indicating interest among traders.
USTC price trades at $0.014, up 15% in the past 24 hours. The 24-hour low and high are $0.012 and $0.017, respectively. The trading volume has also jumped significantly.
LUNA price climbed 33% in the past 24 hours, with the price currently trading at $0.73.
The 24-hour low and high are $0.55 and $0.87, respectively. Furthermore, the trading volume has increased by 300% in the last 24 hours, indicating interest among traders.
Conclusion
The Terra Luna Classic community has shown its resilience and determination to restore the stability and functionality of its blockchain and stablecoin.
The proposal to halt USTC minting is a bold and necessary step to achieve this goal. The positive market reaction reflects the optimism and support for the Terra Luna Classic project, which still has a loyal and active fan base.
The future of Terra Luna Classic remains uncertain, but the recent developments have given it a new hope and momentum.
