Terra Will Burn Remaining UST Supply as Votes Turn in Favor of Proposal
The Terra community has overwhelmingly voted in favor of burning the remaining TerraUSD (UST) supply, marking a significant step in the project's efforts to stabilize and potentially revive the ecosystem. With voting for the proposal expected to end shortly, the community's decision to burn the remaining UST in the community pool will soon be implemented.
The Terra governance system has voted to approve proposal Prop 1747 to burn all TerraUSD (UST) tokens held in the project’s community pool and UST deployed for past liquidity incentives. This decisive action reflects the community's desire to reduce the circulating supply and potentially increase the value of remaining tokens.
As CryptoPotato reported yesterday, Terra's community also voted in favor of Do Kwon's revival plan that intends to fork a new blockchain without the UST algorithmic stablecoin. This burn proposal is seen as complementary to the new blockchain, aiming to address the issues caused by the UST collapse.
The community burning efforts aim to support the project and demonstrate a commitment to rebuilding trust. After seven days, the proposal has finally passed with 153,644,852 voting in favor of burning the UST supply, representing an overwhelming 99.39% approval rate. Only 5,491 votes have been recorded against the proposal so far. Approximately 147.5 million of the total votes are in favor of burning the remaining UST in circulation.
Terra will implement the community’s decision and continue to work towards a sustainable future for the project. The burning of UST is expected to have a significant impact on the remaining UST supply and may influence the future trajectory of the Terra ecosystem.