The Terra community has voted to destroy all UST tokens held in the community pool, as well as those issued through liquidity programs on the Ethereum network. This is 1.3 billion UST.
The UST stablecoin can no longer be called a “stable cryptocurrency” – on May 9, its rate decoupled from the US dollar, which led to the complete collapse of the entire Terra ecosystem. However, the community and the developers of the project continue to make various attempts to somehow correct the situation. One of them will be the destruction of some of the tokens – 1.3 billion UST is about 11% of the total (11.2 billion).
Per sentence 99.3% of the community voted to burn tokens. Terraform Labs will now destroy the UST. The process will take place in two stages – a little less than 1 billion UST, which are in community pool, will be sent to the incineration module and permanently destroyed. The developers will then manually recover 370 million UST from the Ethereum blockchain and also perform a burn procedure.
At the time of publication, the UST rate is about 5.5 cents. Recall that already today, May 27, the Terra 2.0 ecosystem should be restarted. The developers reported that the new Terra Core code has already been released, and the codebase has been verified by SCV Security. At the same time, it is planned to distribute new LUNA coins to holders of the old ones, which have been renamed LUNA Classic (LUNC).
Source: Bits
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