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Terra Luna Classic (TLC) Community is thinking about destroying a large amount (800 million) of a stablecoin called USTC. This stablecoin is likely tied to the value of a real-world currency to keep its value stable. Validator Suggested Legal Route to destroy the 800 million USTC. This would be done through a contract, which is like a digital agreement.
Terra Luna Classic Treasury holds 800 million USTC in a wallet controlled by multiple parties (multisig wallet).The prices of two cryptocurrencies, LUNC and USTC, have dropped significantly The community believes that the prices of LUNC and USTC will go up again after a decision by the Federal Reserve (Fed). The Fed is a central bank that makes important economic decisions.
In simple terms, the community is thinking about destroying a large amount of a stablecoin to help the cryptocurrency prices recover. They have a legal plan to do this by using a contract and are hopeful that the prices will go up after an important decision by the Federal Reserve.
Concerns about Proposal 11913:
The Lunanauts, or validators, are worried about the legal consequences of this proposal. The proposal wants to get rid of 800 million USTC (a type of stablecoin) that is currently in the Risk Harbor multisig wallet. They want to do this by updating the Terrad client, which is the software that runs the Terra Luna Classic network.
The validators think it's better to burn (destroy) the 800 million USTC using a simpler contract. This is because Risk Harbor lost control of the wallet keys, and the community wants to blacklist (block) the wallet. Burning the funds is chosen because recovering the money from the wallet owners is not possible, and blacklisting the wallet is no longer useful.
The core developer needs to make a contract. This contract will have a single instruction to move all the money to a burn address, meaning it'll be destroyed.
The community, through a governance process, will move the multisig contract to the new code. This makes it easier for the validators, as they don't have to install any new code. It also helps minimize legal issues.
In simpler terms, they're trying to solve a problem where a large amount of cryptocurrency is stuck in a wallet with lost keys. Instead of a complicated solution, they want to use a simple contract to destroy the funds, and this process will be done through a community decision to avoid legal problems for validators.
Also Read: From $100 to $1.12 Million: Unlocking the Millionaire Potential of #TerraClassic (#LUNC) Token Burns
Why it's Crucial for LUNC and USTC:
Burning these tokens is important because it reduces the total supply of the Terra Luna Classic tokens.
The community believes that by burning a significant number of tokens, they can make the Terra ecosystem tokens more valuable and active again.
There are ongoing efforts by the community to revive LUNC and USTC. Burning 800 million USTC is seen as a part of these efforts.
The news of burning such a large amount of tokens is expected to create a positive push or momentum.
Comparison to Recent Rallies:
The community points to recent successes where LUNC and USTC experienced significant rallies (300% and 400% increases in value) in just a few weeks. They believe that the 800 million USTC burn could have a similar positive effect.
In simpler terms, the Terra Luna Classic community is planning to destroy a large number of tokens to make their ecosystem tokens more valuable.
Also Read: The Future of Luna Classic (LUNC) and Its Potential to Reach $1 Again
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