In a highly critical decision, the Terra Luna Classic community is at crossroads over the fate of 800 million USTC tokens linked to the Ozone Protocol. Instead of returning them to the community pool, some members are advocating for their burning, which could have significant implications for the value of LUNC and USTC tokens. Why there is a mixed reaction to proposal 11658, do we see a potential downtrend for the pair? Let’s analyze.
800 Million LUNC is at Stake? Fate Depends on the Community Decision
There is a lot of discussion regarding the controversial Proposal 11658, championed by ex-Terra Rebels developer group member Vegas. The proposal aims to return the idle 800 million USTC tokens related to the Ozone Protocol back to the Terra Luna Classic community pool. The main motive behind this move is that the Ozone Protocol, initially proposed by Terra co-founder Do Kwon and funded from the community pool, has not fully utilized the allocated funds in its intended manner.
Notably, this proposal has faced opposition from certain validators and members. A counter-proposal, labeled Proposal 11660 and backed by DNC, M Van S, Lunanauts, and SolidVote Validator, is advocating for the burning of the 800 million LUNC. Even if Proposal 11658 were to pass, these community members seek to ensure that the funds are permanently removed from circulation.
It is worth noting that, the burning of tokens from the Ozone Protocol’s wallet could have significant implications for the prices of LUNC and USTC. As the opponents believe that this move would stimulate USTC repeg and LUNC developments, which have so far failed to bring about a substantial upward momentum in their prices. Seems familiar.
What could be the impact of this on LUNC & USTC Prices?
The most important factor here is the market is closely watching the price movements of LUNC and USTC. LUNC has seen a 1% of minor dip in the last 24 hours, it is currently trading at $0.000080. However, the formation of a triangle pattern indicates the potential for a recovery above the $0.00009 support level.
On the other hand, USTC’s price has declined by 2% in the last 24 hours, currently standing at $0.015. This comes after a recent 50% rally stirred by USTC repeg announcements. Nevertheless, trading volumes have decreased as traders show renewed interest in LUNC.
Overall, the fate of the 800 million USTC tokens and the potential burning of LUNC tokens will greatly influence the direction of the Terra Luna Classic community’s development. As stakeholders cast their votes, the entire ecosystem awaits the outcome that could shape the future trajectory of these digital assets.
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