Critical Proposal Vote from Terra Classic Community: Here are the Details of the Proposal and Its Benefits!

Terra Classic The (LUNC) community voted to approve Proposition 12073, taking a significant step to reduce the supply of USTC in circulation.

This proposal involves upgrading the Risk Harbor Multisig wallet (which has 800 million USTC in it) to a new code version, effectively blacklisting the wallet and burning the USTC balance.

Offer Details and Community Vote

Proposal 12073 received overwhelming support from the Terra Classic community, passing with 51.61% of the votes. The distribution of votes is as follows: Yes: 52.41%, No: 25.82%, No with veto: 21.57%, Abstention: 0.19%

This broad support reflects the desire to address the high circulating supply of USTC, which has been a major concern since the collapse of the Terra ecosystem in May 2022. Reducing the total supply of USTC and LUNC will contribute to the price appreciation with scarcity, which is an important part of the project’s deflationary model.

Combustion Mechanism and Testnet Rehearsal

The proposed migration involves upgrading the Risk Harbor wallet to a new code version (ID 8508). This update includes a “switch handler” that automatically blacklists the wallet and burns its entire 800 million USTC balance.

The burning process will remove 800 million USTC from circulation, taking into account transaction tax. The community has been planning to burn these tokens for a while. In this context, this step may be the result of this effort.

The developers created a testnet environment to be able to simulate the migration and burning process without affecting the mainnet. Successful completion of this testnet rehearsal has paved the way for the actual migration on the Terra mainnet.

Impact and Future Developments As we reported, the USTC price is expected to be positively affected by the burning of 800 million USTC. However, this should only be seen as part of broader efforts to revitalize the Terra ecosystem. The community continues to work on various initiatives such as increasing developer engagement, attracting new projects, and encouraging community growth.

Approval of Proposition 12073 is of great importance to the Terra Classic community. Taking part in governance and supporting steps such as burning 800 million USTC demonstrates the community’s commitment to rebuilding and shaping the future of LUNC. This bid is also notable because it follows a new bid that some believe could cause USTC to reach $1.

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