Terra Validator Opposes USTC Burning, Pushes Alternative Plan To Regain Dollar Peg


19 Sep 2023 5:00 PM

A Terra Classic community member has kicked against burning USTC tokens, suggesting another solution that may lead to the stablecoin re-peg....

  • A Terra Classic community member named Rexyz opposes burning USTC tokens to restore its dollar peg.
  • Rexyz suggests a reverse split of the USTC token as an alternative solution.
  • The reverse split would revalue the stablecoin and potentially lead to the rise of Terra Classic (LUNC) price.
  • Rexyz acknowledges that a reverse split would erase existing network debt and investors would have to accept losses incurred during the collapse of the Terra ecosystem.
  • The revaluation of USTC could also initiate a recovery of the Terra Classic network and lead to a rise in LUNC's value.

The article presents an alternative solution proposed by a Terra Classic community member, Rexyz. The sentiment is neutral as Rexyz suggests a reverse split of USTC tokens but also acknowledges the potential drawbacks.

Go to publisher site

You May Ask

What is the proposed alternative solution to burning USTC tokens?How has the USTC stablecoin been affected since the collapse of the Terra ecosystem?What is the current proposal being voted on by the Terra Classic community?What are the potential benefits of a reverse split of USTC tokens?What are the potential drawbacks of a reverse split and how would it impact investors?

Suggested Reads