The Terra governance system has given a 99.39% approval on Friday Asia time to burn about 1.38 billion TerraClassicUSD (USTC), or approximately 11% of the total supply of the stablecoin’s supply.
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- There is a total of about 11.2 billion circulated supply of USTC, traded at US$0.04 at press time, according to CoinGecko.
- About 1 billion USTC remaining in Terra’s community pool will be sent to the burn module and immediately discarded from supply.
- Terra will then bridge 371 million cross-chain USTC from Ethereum to Terra which will then be burned by Terraform Labs.
- “Eliminating a significant chunk of the excess UST supply at once will alleviate much of the peg pressure on UST,” the proposal said.
- The Terra governance has voted to create a new chain, which will ditch the algorithmic stablecoin USTC (formerly UST) in the old blockchain which has been renamed Terra Classic.
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