In a recent community vote, Terra Luna Classic has chosen to burn a staggering 800 million USTC tokens, resulting in a significant price surge for LUNC. Explore the implications of this bold decision and its impact on the crypto market.
In a groundbreaking decision, the Terra Luna Classic (LUNC) community has officially given its nod to Proposal 11832, which involves the burning of a staggering 800 million USTC tokens. This landmark proposal, championed by the well-known LUNC community member Vegas, seeks to blacklist the wallet TERRA1QYW695VAXJ7JL6S4U564C6XKFE59KERCG0H88W, which holds the massive USTC stash. The intent is not to obliterate the tokens entirely but to immobilize them, pending potential recovery through governance in the future.
The proposal managed to surpass the crucial “pass threshold,” securing an impressive 54.07% “Yes” votes, indicating strong support from the community. Prominent validator Allnodes joined the ranks of those who voted “Yes” to the proposal to burn the 800 million USTC tokens. On the flip side, the proposal garnered 30.51% “No” votes, 13.39% “No with veto” votes, and 2.03% “Abstain” votes. This diverse distribution of votes underscores the uncertainty within the community regarding the freezing of USTC tokens.
The divide in the percentage of votes highlights the gravity of this decision. A total of 52 validators took part in the voting process, with 21 of them favoring the proposal while another 21 opted to vote “No with veto.” Given the significance of the proposal and the far-reaching implications of their decision, some of the top validators, including Hexxagon, LuncLive, LuncGoblins, and Solidvote, opted for a neutral stance by voting “Abstain.”
A noteworthy portion of LUNC stakeholders firmly believe that directly altering the blockchain state and destroying funds runs contrary to the ethos of blockchain technology. Unlike outright destruction, blacklisting offers the possibility of a reversal, should the need arise in the future, contingent on valid reasons presented by the fund’s owners.
The community had previously attempted diplomatic means to persuade the fund owners to either transfer the assets to the community pool or initiate the direct burning process. However, these efforts proved fruitless, leading the L1 development team to enact the blacklisting procedure.
Terra Luna Classic (LUNC) Price Surge
The approval of Proposal 11832 has triggered a positive response from traders, resulting in a substantial surge in both LUNC and USTC prices.
At the time of writing, LUNC was trading at $0.00005753, marking a notable 1.10% gain over the past 24 hours, according to data from Marketcap. During this period, the token experienced various price fluctuations, with lows and highs ranging from $0.0000556 to $0.0000574. While the price increase may not be considered substantial and remains below a key LUNC resistance level, it holds significance, especially in light of the broader crypto market’s recovery from a recent selloff. The LUNC community continues to maintain its optimism that LUNC is on track for an unprecedented surge that could potentially “shed multiple zeros” and reach a long-term target of $3.
Similarly, USTC has recorded a 0.63% price upturn over the last 24 hours, now trading at $0.01107. This price stability is a notable contrast to the considerable fluctuations that USTC has experienced in recent times.
The approval of this groundbreaking proposal underscores the dynamism of the Terra Luna Classic community and its commitment to shaping the future of its ecosystem. As the community prepares for the next steps in this process, all eyes are on the potential implications for USTC and LUNC, as well as the broader crypto market.