The Terra governance has approved the proposal to burn a certain amount of TerraUSD (UST) tokens. The tokens were held in the project’s community pool and also deployed for past liquidity on Ethereum.
The total number of votes favouring the action was 99.3% of the total number. According to CoinGecko, the total number of tokens to be burnt equals more than 1.3 billion UST or around 11% of the existing 11.2 billion UST supply.
The burn will be taken care of by Terraform Labs - Terra’s core development firm - and it will be conducted in two phases, the Terra governance forum revealed.
In the first phase, Terraform Labs will permanently remove about 1 billion UST from the supply chain by sending those tokens from Terra’s community pool to a burn module.
While in the second phase, Terraform Labs’ team will bridge back 370 million UST to Terra from the Ethereum blockchain and destroy them.
The dollar-pegged algorithmic stablecoin UST token plummeted to $0.04 cents earlier in May,...
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