In another attempt to support Earth’s revival (Luna), the community voted to burn a large amount of UST from its community pool.
In early May, Terra founder Do Kwon explain One potential solution to Terra’s collapse is to absorb the supply of stablecoins. In response, users propose to burn 1 billion TerraUSD (UST) stored in the Terra Community Pool and the remaining cross-chainUST deployed on the Ethereum blockchain as a reward.
according to proposal, burning cash will help “reduce outstanding bad debts in the Terra economy”. In addition to this, it is also expected to restore the important role of the peg to the dollar by removing a large amount of excess supply.
The proposal was submitted on May 12 and is expected to be completed in seven days. However, it failed to execute as the number of USTs in the community pool did not match the proposal. This is due to the execution of another proposal, which resulted in some funds being removed from the pool.
In addition to community burning efforts to support the project, cryptocurrency exchange MEXC Global also pledged to One-month buyback and burn for LUNA. The exchange commits to use the transaction fees earned from the new LUNA/USDT spot trading pair to buy LUNA and send it to the burning wallet address.
Despite sharing a flashing address with the Terra community, Kwon is not in favor of flashing.notorious Terra founder warns of ‘LUNAtics’ About sending LUNA to the burn address. According to Kwon, burning won’t do anything. He told users, “Nothing will happen except you lose your coins.”