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- The Terra Luna Classic community has approved the freeze-up of 800M USTC tokens.
- This endorsement underscores the governance advancement of the LUNC community.
Officially, the Terra Luna Classic community has endorsed the proposal to burn 800 million USTC tokens. The proposition which is dubbed Proposal 11832 “Proposal to blacklist wallet TERRA1QYW695VAXJ7JL6S4U564C6XKFE59KERCG0H88W” was introduced by popular LUNC community member Vegas. The wallet in question is an Ozone Protocol wallet containing 800 million USTC and the plan is to freeze them instead of outrightly destroying them without authorization.
Notably, the proposal has exceeded the “pass threshold” with 54.07% “Yes” votes. Renowned validator Allnodes was one of those who voted “Yes” to the proposal to burn the 800 million USTC tokens. On the other hand, the proposal received 30.51% “No” votes, 13.39% “No with veto” votes, and 2.03% “Abstain” votes. The difference in the percentage of votes is a clear indication that the community is unsure if freezing the USTC tokens is the right thing to do.
It is likely that this will significantly affect the burn. A total of 52 validators participated in the voting process and 21 of them voted in favor of the proposal while another 21 voted “No with veto.” Seeing that it is a major proposal and the decision made would go a long way, top validators like Hexxagon, LuncLive, LuncGoblins, and Solidvote decided that it was better to stay neutral in their choice, hence, they chose to vote “Abstain.”
Many LUNC stakeholders strongly believe that directly changing the blockchain state and destroying funds goes against blockchain ethos. Unlike destroying the tokens, blacklisting allows for a reversal, meaning that the fund could be recovered through governance if the need arises in the future and if their owners produce a valid reason.
The community had earlier tried to employ diplomacy in convincing the fund owners to transfer to the community pool or burn the funds directly but the effort proved abortive. This led to the decision of the L1 development team to implement the blacklisting process.
Terra Luna Classic (LUNC) Price Surge
In response to the endorsement of Proposal 11832, traders appear to be reacting positively, leading to a surge in the price of LUNC and USTC.
At the time of this writing, LUNC was trading at $0.00005753, having gained 1.10% in the past 24 hours according to data from Marketcap. In this space of time, the token has seen different lows and highs ranging from $0.0000556 and $0.0000574.
While the price gain is not huge and still below a key LUNC resistance level, it is a significant growth especially as the broad crypto market is just recovering from the recent selloff. The LUNC community still expects that LUNC could make an unprecedented move to “kill multiple zeros” to hit $3 in the long term.
Similarly, USTC has seen a 0.63% price surge in the last 24 hours and is now trading at $0.01107 underscoring the consistency in the token price which has been fluctuating significantly in recent times.
