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- The Terra Luna Classic community refuses to burn 8 million USTC, preferring to use funds for development and liquidity.
- Despite the rejection of the proposed burn, LUNC and USTC face price declines in the volatile market.
Key validators of Terra Luna Classic vote against USTC burning, seeking more effective resource management. They recently rejected a proposal to burn 8 million USTC, a stable currency of the Terra ecosystem, for chain development purposes. This rejection is not an isolated event; in fact, it is the third USTC burning proposal that the community has discarded.
What does this rejection mean?
The proposal to burn 8 million USTCs from the community pool, which sought to reduce the supply in circulation, has been discarded by the community. You, as a follower of cryptocurrencies, must be wondering: what led the community to make this decision?
The pool, known as “Burn 8 million USTC directly from CP,” sought to burn all the USTC in the community pool by sending them to a burn address. But why was it rejected? It seems that the most influential validators in the community, such as Interstellar Lounge and Lunanauts, voted against it, believing that the funds should be used for other development purposes and liquidity support on projects.
At a Glance at the Figures
Terra Luna Classic’s community pool is not small. It has 8.11 million USTC and 3.61 billion LUNC, according to StakeBin data. With these figures in mind, many in the community are of the opinion that there are sufficient funds to handle on-chain activities and other associated costs.
The Intentions Behind the Burn
The idea of burning USTC was not just a financial maneuver. According to VegasMorph, one of the proponents of the burn, it was a way to demonstrate the community’s commitment to self-sufficiency and responsible management. The action sought to align with the community’s vision of deflation and send a proactive message about the future of Terra Classic.
The Market Responds
LUNC’s price has suffered a notable drop, losing 22% of its value amid massive liquidations in the market. It currently trades at $0.000118.
On the other hand, USTC is at $0.0274, experiencing a decline of more than 3% in the last 24 hours.
Where Terra Luna Classic is headed
This latest community decision indicates a focus beyond deflationary measures. It appears that the focus is now on development and liquidity. The approval of Genuine Labs to work on the chain is a clear indication of the direction the community is heading.
The Terra Luna Classic community’s rejection of USTC’s burning proposal reveals a careful, long-term development-oriented strategy. In a constantly evolving marketplace, this decision highlights the importance of making balanced and responsible decisions. Itis an example of how cryptocurrency communities can face complex dilemmas, balancing innovation and prudent resource management.