Terra developers will burn 1.3 billion UST tokens

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The Terra community voted to destroy all UST tokens held in the community pool, as well as those issued as part of liquidity programs on the Ethereum network. This is 1.3 billion UST.

The UST stablecoin can no longer be called “stable”cryptocurrency” - on May 9, its rate became untied from the US dollar, which led to the complete collapse of the entire Terra ecosystem. However, the community and the project developers continue to make various attempts to somehow correct the situation. One of them will be the destruction of part of the tokens - 1.3 billion UST are about 11% of the total number (11.2 billion).

For the token burning proposal99.3% of the community voted. Now Terraform Labs will destroy the UST. The process will take place in two stages - just under 1 billion UST in the community pool will be sent to the incineration module and destroyed forever. The developers will then manually return 370 million UST from the Ethereum blockchain and also carry out the burning procedure.

At the time of publication, the UST rate is approx.5.5 cents. Let us remind you that today, May 27, the Terra 2.0 ecosystem should be relaunched. The developers reported that the new Terra Core code has already been released, and the codebase has been reviewed by SCV Security. At the same time, it is planned to distribute new LUNA coins to holders of old ones, which have been renamed LUNA Classic (LUNC).