Terra Classic Community voted to halt all minting and reminting actions associated with TerraUSD Classic (USTC) as a crucial step towards restoring stability. So this decision is part of the effort to reestablish a stable linkage of USTC with US dollar.

The Terra Classic community voted and accepted the halting for USTC ‘s minting with a 59% majority, considering it a significant step in addressing uncertainties that have recently affected the Terra Classic ecosystem.. About 40% of the community members, on the other hand, opposed the proposed change, reflecting differing viewpoints within the community.

The primary goal of halting USTC’s minting is to protect the interests of both the Terra Classic community and external investors. This step aims to facilitate the re-establishment of a stable linkage to the U.S. dollar by reducing the supply of USTC, thereby creating a more predictable and trustworthy environment for all stakeholders.

This crucial decision is one of the steps taken to build the Terra Classic ecosystem on a firmer foundation and reduce future uncertainties. Additionally the Terra Classic community will continue to contribute to the creation of a more stable financial environment with this change.

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Past Problems: USTC

The origin of this important decision by the Terra Classic community stems from an unexpected depreciation of TerraUSD Classic (USTC) against the U.S. dollar in May 2022. This unexpected event had widespread impacts on the Terra ecosystem and led to a serious crisis. Luna Classic (LUNC), tightly linked with USTC, bore the heaviest burden of this crisis.

Following the departure of USTC, the value of Luna Classic (LUNC) dropped almost 100% and caused shock waves in the crypto markets. The dramatic fall in the value of LUNC triggered a broader recess across cryptocurrencies, resulting in a considerable loss of about 40 billion dollars in total market value.

The proposal to halt the minting of USTC could have significant consequences for the crypto industry. In particular, it could encourage leading crypto exchanges to initiate the burning process of USTC tokens. These decisions are playing a crucial role for the future of Terra Classic project.

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