USTC’s shift to the $1 mark appears possible, given the recently passed 11784 proposal from the Terra Classic (LUNC) community. This move aims to end the minting and reminting of the USTC stablecoin to raise its value.
This move is vital to stabilize the USTC coin, considering the negative events that resulted from Terra’s collapse in May last year.
Terra Classic Community Supports the Stop to USTC Minting
Before now, there have been multiple software upgrade challenges with the previous proposal release. However, its reintroduction now garners interest and support from the community.
With this objective to terminate the minting and reminting of the USTC coin, the chances of closing existing loopholes are high. These loopholes also include the conversion of xUST to USTC.
The substantial support from the community was vivid in the vote on the proposal. Based on the results, 55.32% of the ballots had a YES, indicating wider support. However, 37.75% of the votes propose sustaining the previous status quo of Terra Classic with a NO.
Notably, the Terra Classic community has been actively engaged in efforts to reduce the circulating supply of USTC through burns, all in pursuit of the goal of re-peg it to $1. Yet, the continuous minting and reminting of tokens have posed challenges to this mission.
By stopping the reminting of the coin, the community aims to protect the interest of all members, including external investors. Besides, this decision may attract institutional market participants like Binance to the burning efforts since the minting and reminting are ending.
Invitation to Major Players
Importantly, the plans to re-peg USTC also involve collaborations with major players. The community recently passed a proposal inviting Binance to participate in USTC burning by allocating 50% of its USTC trading fees to this cause. This is due to the successful strategy employed with LUNC.
Additionally, in the past month, the community approved burning 800 million USTC tokens, which were initially part of the 1 billion USTC sent to Ozone Protocol by Do Kwon in March. To further the cause, the USTC Quant Team has been actively exploring various avenues to re-peg the stablecoin.
Currently, the team is engaged in discussions with centralized exchanges and potential partners, contemplating a Real-World Asset (RWA) model for USTC. This move will mark an exciting phase in the journey to restore USTC’s stability and return it to its intended peg of $1.
Meanwhile, USTC has been bullish over the past 24 hours, with a price change of 2.66%. It now trades at $0.01289. Regarding its trading activity, USTC has recorded a 62% surge in volume within the same period, bringing its trading volume to $5.6 million.
Based on its daily price chart, USTC now stands above the EMA 9 after a long trading period below this indicator. This formation indicates the possibility of a continuous uptrend in the coming days.