Terra will destroy 1 billion UST

Terra (LUNA) will burn 1 billion Terrausd (UST). This is another attempt to revive Terra. The hope now is that the UST peg with the US dollar recovering after burning a surplus of UST.

Incidentally, the decision for 1 billion UST is not a direct decision of Terra itself, but of the community. In a voting round it was decided to remove a large part from the community pool to burn.

An attempt to save Terra

Earlier this month, shortly after the crash, the founder of Terra came up with a rescue plan. Do Kwon then indicated that the UST stock must be absorbed before UST can re-peat the dollar. The community of Terra responded and came up with the recovery to burn 1 billion terrasusd, coming from the aforementioned community pool.

The proposal

According to the proposal of Terra’s community, the burning of UST should do a number of things. Among other things, it would reduce Terra’s bad debts. In addition, removing the inventory surplus should help adjust the dollar peg.

The proposal had already been submitted on 12 May, but implementation was somewhat delayed. This was due to the fact that there was not enough UST in the community pool. In the meantime, that is the case and a next proposal has already been approved. Whopping 153.644.852 votes, or 99.39%were positive.

Bitvavo supports LUNA airdrop

In an effort to make a fresh start, Terra has launched a new network: Terra 2.0. The old network, with UST, is now known as Terra classic and native token luna as luna classic. Stablecoin terrausd will not become part of this new network. Terra has decided to come up with a LUNA airdrop, which is also supported by Dutch crypto exchange Bitvavo

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