Terra Classic, the original network by Terraform Labs, has decided to halt the minting of its troubled stablecoin, terraUSD (USTC).
USTC is the token that plummeted 99% in value after the collapse of the Terra protocol in 2022.
A majority of 59% of the community voted in favor of this proposal on Terra Classic’s governance forum last week.
USTC is currently trading at 1 cent as of Monday afternoon. Terra Classic is a separate blockchain from Terra 2.0, which is a forked version that emerged from the ashes of Terra.
The community hopes that by stopping USTC minting, they can protect users and outside investors who are trying to restore the peg by burning USTC.
Burning means sending tokens to an address that nobody can access, effectively removing them from circulation.