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The post <a rel="nofollow" href="https://coinpedia.org/news/terra-classic-community-suspends-ustc-minting-amidst-secs-investigation-of-do-kwon/">Terra Classic Community Rallies to Save USTC, Votes to Halt Minting</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
Dark clouds have always hovered over the Terra community, and the concept of minting is not a novel one within this ecosystem. However, in response to the recent UST de-pegging crisis, the <a href="https://coinpedia.org/altcoin/is-terra-luna-classics-crown-as-the-top-gainer-fading-lunc-price-faces-uncertainty-amid-declining-open-interest/">Terra Classic</a> community has undertaken a significant initiative to rescue the struggling Terra Classic UST tokens. 
So, what’s really happening? 
A <a href="https://atomscan.com/terra/votes/11784">proposal</a> has been put forth to discontinue the UST-LUNA swapping mechanism, which allowed users to freely exchange UST and LUNA. While this mechanism had its advantages, it had also proven to be a two-sided blade during times of crisis. 
This move comes after a similar crisis unfolded in May 2022, when USTC debugged from the U.S. dollar. This event triggered a catastrophic collapse in Terra and was closely tied to <a href="https://coinpedia.org/price-prediction/terra-luna-price-prediction/">Luna Classic (LUNC)</a>. LUNC’s value plummeted by nearly 100%, contributing to a broader downturn in the crypto markets, resulting in a staggering loss of approximately $40 billion in total market capitalization.&nbsp; 
<h2 class="wp-block-heading" id="strong-minting-or-reminting-what-s-the-take-strong">Minting or Reminting: What’s the Take?&nbsp;</h2> 
To solve the crisis and save the ecosystem, the community voted on the proposal to halt all minting and reminting of USTC. This proposal received 59% support from the community. USTC, the unstable coin at the epicenter of the Terra ecosystem, collapsed last year and saw its value drop to mere pennies. Meanwhile, LUNC’s supply experienced a significant surge. 
Also Read: <a href="https://coinpedia.org/price-analysis/lunc-price-analysis-will-terra-classic-plunge-to-new-low/">LUNC Price Analysis: Will Terra Classic Plunge To New Low?</a> 
<h2 class="wp-block-heading" id="strong-pricing-to-take-a-back-seat-strong">Pricing to Take a Back Seat</h2> 
Interestingly, the objective of this proposal is to expedite the burning of LUNC tokens, potentially increasing their value and ultimately restoring the value of USTC. However, achieving this outcome is seen as a challenging endeavor. Following the proposal’s approval, the price of USTC saw a 3.9% increase, reaching $0.0129. This reflects a positive trend over the past 30 days. LUNC also saw a 2% gain, with an 8.3% increase in value over the last seven days. 
<h2 class="wp-block-heading" id="h-what-next">What Next?&nbsp;</h2> 
The voting proposals aren’t just about governance; they show the community’s determination in a crisis. USTC is trading at only $0.013044, far from its intended value. We’ll have to see if these new proposals bring stability and vitality to Terra Classic. 
Also Read: <a href="https://coinpedia.org/news/terra-classic-community-urges-binance-to-burn-ustc-fees-for-stability/">Can Terra Classic’s New Proposals Save USTC? Here’s Everything You Should Know</a> 
Also, the SEC’s take to depose former Terra CEO <a href="https://coinpedia.org/news/judge-rakoff-gives-green-light-to-secs-probe-into-terra-co-founder/">Do Kwon</a> is creating panic in the Terra community as it may impact the ill-fated users who lost their hard-earned money in the Terra collapse. Is SEC’s move in line to find any suspicious link with Binance as they are also investigating their past trading activities? 
Do you think this is a step in the right direction for the Terra Classic ecosystem?

Terra Classic Community Rallies to Save USTC, Votes to Halt Minting

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