- The Terra Luna Classic community, led by former L1TF developer Fragwuerdig, is testing an 800 million USTC burn strategy through contract migration.
- This move aims to reduce the circulating supply of USTC, with price performance fluctuations observed in both LUNC and USTC tokens amidst the development.
In the realm of cryptocurrency developments, the Terra Luna Classic (LUNC) community is making significant strides with the initiation of testing for an 800 million USTC burn. This ambitious move aims to reduce the circulating supply of the stablecoin through a contract migration strategy, marking a pivotal moment for the project’s trajectory.
Terra Luna Classic Starts Testing 800 Mln USTC Burn
Led by former Joint L1 Task Force (L1TF) developer Fragwuerdig and a dedicated team of developers and validators, Terra Luna Classic has embarked on a testnet rehearsal in preparation for the monumental task of burning 800 million USTC. This decision follows extensive community deliberations, concluding that burning the supply is a more viable option than attempting fund recovery or enforcing blacklisting measures.
“I am going to need your ‘testnet-yes’ on proposal 45. We are migrating a contract via governance to burn its contract balance,”Fragwuerdig announced, underlining the community’s commitment to executing this crucial operation.
While the testnet contact wallet initially lacks the full 800 million USTC due to its nature as a testing environment, the community possesses the capability to simulate the burn through execution and migration endpoints. The proposed code will facilitate the migration of 800 million USTC from the multisig contract or Risk Harbor wallet to a new code version via a contract migration proposal.
Community Approval and Price Performance Before CPI News
For this momentous migration and burn to proceed, community approval is paramount. Upon approval, the migration will commence, effectively blacklisting and burning the targeted 800 million USTC balance. Importantly, this methodology ensures that the blockchain’s fundamental state remains intact throughout the process, as asserted by Fragwuerdig.
Amidst these developments, the price performance of both LUNC and USTC tokens has garnered attention. LUNC witnessed a slight retracement in price following the US Consumer Price Index (CPI) release, with current trading settling at $0.000113. Conversely, USTC experienced a surge in price in response to the impending burn, currently trading at $0.02636.
As the Terra Luna Classic community embarks on this pivotal journey towards reducing the circulating supply of USTC, the broader cryptocurrency market awaits the outcome with anticipation. With community consensus and meticulous planning, this endeavor underscores the resilience and adaptability of decentralized finance projects in the face of evolving challenges.
