Analysis of the Vote and What It Means
The image shows details of an ongoing vote on the final on-chain proposal to burn 1.86 billion USTC from LFG wallets via a chain upgrade.
Current Status of the Vote
The voting period is still open, with 4 days and 5 hours remaining.
So far, YES votes account for 26.65% of the total votes (123.23B LUNC).
NO votes are minimal (0.07%), while 13.82% have voted “NO with VITO (63.92B LUNC).
The majority (59.46%) have abstained from voting, meaning they have chosen not to support or oppose the proposal.
What Happens If the Proposal Passes?
1.86 billion USTC will be burned, reducing the total supply, which could help stabilize its price.
A chain upgrade is required to execute the burn, meaning modifications to the Terra Classic blockchain will be needed.
What Is LFG?
LFG (Luna Foundation Guard) is a reserve fund originally created to support the stability of Terra’s algorithmic stablecoins, like USTC. After the collapse of Terra in 2022, some assets remained in LFG wallets, and now the community is pushing to burn them to benefit the Terra Classic ecosystem.
Conclusion
The vote is leaning towards approval, as the required quorum and pass threshold have been reached. If this trend continues, 1.86 billion USTC will be burned once the chain upgrade is implemented, potentially strengthening the Terra Classic ecosystem.
