In a strategic move, the community disabled a crucial mechanism, halting market swapping and coin minting. Championing change, they unanimously supported Proposal 11868, a key step in stabilizing the platform by curbing USTC minting through a 100% Tobin tax.
Users are now unable to flip between USTC and other stablecoins, effectively putting an end to USTC burn through swaps. However, this won’t affect decentralized exchanges like Terraswap, where transactions for existing pairs remain unaffected.
Following this development, the LUNC token saw an 18% surge, currently valued at $0.000084.
On the stablecoin front, USTC showed a 13% uptick, trading at $0.014 over the last 24 hours, with low and high points at $0.012 and $0.017, respectively. The trading volume for USTC also witnessed a significant boost.
The LUNA token witnessed an impressive 33% surge in the past 24 hours, currently priced at $0.74, with low and high points at $0.55 and $0.87.
The decision to halt USTC burn through will have an impact on the overall tokenomics, this move could lead to unintended consequences within the ecosystem.
Several other assets in the industry also experienced price increases during the same period. This broader trend suggests that external factors, beyond the community vote, could be contributing to the overall market movement.