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Major Update in Terra Classic Ecosystem: 800 Million USTC Set for Burn and Migration

Developer Initiatives and Market Reactions Precede Upcoming Vote

KEYTAKEAWAY

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  • Developer Fragwuerdig is testing the burn of 800 million USTC in preparation for a major contract migration.
  • The community agreed on burning the USTC due to the funds being unrecoverable and the blacklist being unnecessary.
  • A significant 800 million USTC will be removed from the Risk Harbor wallet through a contract proposal.
  • LUNC’s price experienced a decline following the US CPI news, while USTC’s price saw an increase.
  • The proposal for this contract migration and burn is pending community vote.

In a significant move within the Terra Classic ecosystem, a plan to burn 800 million USTC has been set into motion, alongside a crucial contract migration.

This initiative, led by developer Fragwuerdig, aims to reduce the stablecoin’s supply by eliminating 800 million USTC from the Risk Harbor wallet.

The decision to proceed with this burn came after the community concluded that recovering the funds was not possible, and the act of blacklisting served no purpose.

Contract Migration and Testnet Rehearsal

The process involves migrating the USTC from the Risk Harbor wallet through a carefully crafted contract proposal.

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To ensure a smooth transition, a testnet rehearsal was conducted with a 10 million USTC wallet, specifically for execution and migration endpoint to the burn contracts.

This step is pivotal to ensure the blockchain’s state remains unaffected during the blacklisting and burning phases.

Collaboration for Supply Reduction

The initiative also sees collaboration with a former Joint L1 Task Force developer. Their collective goal is to significantly reduce the number of stablecoins in circulation, a key step believed to aid in stabilizing the ecosystem.

Before this plan can be set into action, it awaits the approval of the community through a vote on the proposed contract migration.

Market Reactions Pre-CPI News

Before the release of the US CPI news, the market saw varied reactions. The price of LUNC fell, trading at $0.000113, while USTC experienced a surge to $0.02636, likely in response to the anticipated burn.

The 24-hour price range showed LUNC between $0.000111 and $0.000118, and USTC between $0.02576 and $0.02727.

Interestingly, while LUNC’s trading volume decreased, USTC’s slightly increased, reflecting the market’s response to the upcoming changes.

Looking Forward

As the Terra Classic community awaits the outcome of the vote, the proposed burn and contract migration represent a pivotal moment for the ecosystem.

These actions are expected to have a significant impact on both the supply stability and the future market performance of USTC.

With developer Fragwuerdig at the helm, the community looks forward to a successful execution and the positive changes it may bring.

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