The locals have decided to burn a lot of UST from the communal pool in an effort to help Terra (LUNA) recover.
Back in May, Terra’s creator, Do Kwon, said that absorbing the stablecoin supply may be the key to fixing the scandal. In response, some people suggested destroying the remaining 1 billion UST in the cross-chain UST deployment on the Ethereum blockchain and the 1 billion UST in the community pool as a kind of incentive.
Terra News: The Proposal Set Forward
The fire is expected to “decrease the outstanding bad debt of the Terra economy,” as stated in the plan. In addition to this, it is anticipated to eliminate a significant portion of surplus supply, so helping to restore the UST dollar peg.
The proposal was due on May 12 and was to go through final revisions throughout the following week. However, it was not carried out as planned since there wasn’t enough UST in the shared pool to back up the plan. This is because some money was taken out of the pot to finance a different idea, which is why it’s not as big as it might have been.
Regardless, on May 20 the community made yet another plan to carry out the fire. It took seven days, but with 153,644,852 votes in favor, burning the UST supply has been approved.
In addition to community-wide burns in favor of LUNA, cryptocurrency exchange MEXC Global has pledged to purchase back and burn LUNA for a whole month. The trading platform has promised to acquire LUNA using the trading fees generated by the newly introduced LUNA/USDT spot trading pair, and then transfer the cryptocurrency to the address of the burning wallet.
Kwon is not a supporter of burning, despite the fact that he and the Terra community both have burn addresses. The evil creator of Terra urged the “LUNAtics” not to transmit LUNA to the burning location. Kwon claims that the act of burning is futile. Users, he assured them, “lose nothing except your tokens.”
