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The Terra governance system votes to approve a program to burn all TerraUSD (UST) tokens held in the pool and UST deployed for previous liquidity incentives on Ethereum.
Source: Terra Station
LUNA USD down -10.01%, UST USD down -14.53%
This amounts to over 1.3 billion UST, or nearly 11% of the existing 11.2 billion UST supply. The proposal obtained 99.3% of the total cast votes in support of the proposal.
After the vote, Terraform Labs, Terra’s core development company, will progress to implement the burn. The process will start by sending nearly 1 billion UST from Terra’s community pool to burn the module where it is removed permanently.
The team will also manually cover back 370 million UST to Terra from the Ethereum blockchain and destroy them.
The approval of the UST burn takes effect after Terra’s governance system also passed Terraform’s revival plan to revive the Terra blockchain and create LUNA 2.0 tokens.
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