Terra has been making a lot of headlines lately, and it was not for the best reasons. The tragedy that took place and drowned the crypto market will definitely remain one to remember.
Now, Terra is making headlines again, but this time, it’s something different.
Terra governance system votes to approve a proposal to burn all UST tokens
The BlockCrypto notes that the Terra governance system has voted to approve a proposal to burn all TerraUSD (UST) tokens held in the project’s community pool and UST deployed for past liquidity incentives on Ethereum.
“This amounts to more than 1.3 billion UST, or roughly 11% of the existing 11.2 billion UST supply, according to CoinGecko,” according to the online publication mentioned above.
They also noted that the proposal received 99.3% of the total cast votes in favor of it. Following the vote, Terraform Labs, Terra’s core development firm, will proceed to execute the burn.
This process will take place over two phases.
The same online publication noted that first, it will send about 1 billion UST from Terra’s community pool to a burn module where it will be permanently removed from the supply.
“Then, the team will manually bridge back 370 million UST to Terra from the Ethereum blockchain and destroy them, as detailed in an explainer post on the Terra governance forum.”
We suggest that you check out the original article in order to learn all the available details.
The collapse of TerraUSD
It’s been revealed that TerraUSD will be impacting stablecoins. Check out what an important Bloomberg strategist had to say.
It’s been revealed that senior Bloomberg analyst Mike McGlone says algorithmic stablecoins relying on market growth may be done for the foreseeable future.
During a new interview with Cointelegraph, the commodities strategist says that the recent collapse of Terra (LUNA) and its stablecoin. Stay tuned for more news.