The Terra Luna Classic (LUNC) community has just made a significant move that has the crypto world buzzing! In a resounding display of unity, they’ve voted to disable the minting of USTC, the once-stable stablecoin, by implementing a 100% Tobin tax. But what does this mean, and why is everyone talking about it? Let’s dive into the details and explore how this decision could potentially pave the way for the revival of the Terra Luna Classic chain and its native token, LUNC.
USTC Minting Halted: A Community United for Revival
Proposal 11868, a critical initiative aimed at fulfilling Proposal #11784, has been overwhelmingly approved by the Terra Luna Classic community. The core objective? To effectively stop the minting and re-minting of USTC. The chosen method? Ramping up the Tobin tax to a whopping 100%. This decisive action sends a clear message: the community is serious about tackling the USTC situation head-on.
To understand the significance, let’s break down the technicalities. As stated in the proposal:
“The only minting of USTC currently happening on chain is through the market module, which allows burning a coin to mint another.”
Essentially, the market module was the loophole allowing USTC minting. Historically, this module facilitated swaps between LUNC and USTC. However, following the dramatic Terra-LUNA collapse in 2022, this mechanism was deliberately disabled to prevent further instability. Now, by applying a 100% Tobin tax, the community has effectively slammed the door shut on any USTC minting through this market module. This also means users can no longer swap between USTC and other stablecoins via this route, directly impacting the USTC burn mechanism that relied on these swaps.
Key Takeaway: What does disabling USTC minting mean?
- Stops USTC Creation: Prevents the further supply increase of USTC through the market module.
- Disables Market Swaps: Eliminates swapping functionalities within the Terra Classic market module.
- Impacts USTC Burn (Indirectly): Reduces one potential avenue for USTC burning that relied on swaps within the module.
It’s crucial to note that this change does not affect swapping on decentralized exchanges (DEXes) like Terraswap. Users can still trade existing pairs on these platforms. This is an important distinction to keep in mind for those actively trading within the Terra Classic ecosystem.
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Unanimous Community Support: A Rare Consensus
The passing of Proposal 11868 wasn’t just another vote; it was a landslide victory showcasing remarkable unity within the Terra Luna Classic community. The proposal garnered a staggering 98.95% approval! Out of 55 validators who participated in the voting process, a resounding 50 cast “Yes” votes.
This level of consensus is particularly noteworthy. Top validators, including Allnodes, Interstellar Lounge, HappyCattyCrypto, Interstake One, and JESUSisLORD, were among those who threw their weight behind the proposal. In fact, this marks the first time in months that a proposal has achieved such universal support from validators, highlighting the shared determination to address the USTC challenge.
Terra Ecosystem Tokens React: LUNC, USTC, and LUNA Prices Rally
The market responded positively to this decisive action, with tokens within the Terra ecosystem experiencing a notable rally in the past 48 hours. Let’s take a closer look at the price movements:
LUNC Price Performance
LUNC, the native token of Terra Luna Classic, has shown positive momentum. In the last 24 hours, LUNC has increased by 2.73% and is currently trading around $0.00008396. Trading activity has also surged, with a 300% increase in trading volume over the same period, indicating renewed trader interest.
USTC Price Performance
USTC, the stablecoin at the heart of this proposal, has witnessed an even more significant price jump. Currently trading at approximately $0.01547, USTC has risen by 12% in the last 24 hours. Similar to LUNC, USTC has also experienced a dramatic surge in trading volume, reflecting increased market activity and speculation.
LUNA Price Performance
Interestingly, even the price of LUNA, the token of the newer Terra 2.0 chain, has joined the rally. LUNA has increased by 13.93% in the past 24 hours and is currently trading around $0.8146. However, unlike LUNC and USTC, LUNA’s trading volume has decreased by 62%, suggesting a potential divergence in market sentiment compared to the other Terra tokens.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Is This the Start of a Terra Luna Classic Revival?
The Terra Luna Classic community’s decisive action to disable USTC minting is undoubtedly a step in a positive direction. Whether this will be the catalyst for a full-fledged revival remains to be seen. The price rallies in LUNC and USTC indicate renewed market interest and optimism, but the journey to repeg USTC and revitalize the Terra Luna Classic chain is likely to be a long and complex one. However, the unity and determination displayed by the community offer a glimmer of hope for the future of Terra Luna Classic.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.