Terra Classic community mobilized to burn 800 million USTC stablecoins again. A prominent validator has proposed a notable way to burn 800 million USTC from assets held in the Risk Harbor Multisig Wallet through a contract.
Terra Classic validator Lunanauts has expressed concerns about the legal repercussions of proposal 11913. The proposal aims to burn 800 million USTC in the Risk Harbor multisig wallet through an update to the Terrad client.
The validator believes that it initiated the burning of 800 million USTC from the assets in the wallet using a simplified contract. The LUNC community was notified that Risk Harbor had lost the keys and agreed to blacklist the wallet. Therefore, since recovery of funds via wallet holders is not possible and blacklisting no longer serves any purpose, the community is planning to burn it instead.
The core developer needs to create a contract with a single MsgSend to transfer all assets to the burn address. The multisig contract is then moved to this code identity through governance. This eliminates the need for validators to upload any code, minimizing legal implications.
The Terra Classic community managed to burn a large amount of tokens to reduce the supply and revitalize the ecosystem tokens. While several community-led efforts to revive the LUNC price and strengthen USTC are still ongoing, an 800 million USTC burn could help trigger enough impetus. LUNC and USTC will recover again, similar to the 300% and 400% rally experienced in the last few weeks.
LUNC price is down 4% in the last 24 hours and the price is currently trading at $0.000171. The 24-hour low and high price are $0.000164 and $0.000181 respectively. Transaction volume has decreased in the last 24 hours. USTC price is trading at $0.0400, down over 1% in the last 24 hours. The 24-hour low and high are trading at $0.0372 and $0.0410 respectively.