The Terra governance system has authorized the burning of all UST tokens held in the project’s community pool.
This confirmation corresponds to approximately 11% of the current 11.2 billion UST supply, according to CoinGecko data. He also drew attention to the fact that the proposal was approved with a large rate of 99.3%. After approval, Terraform Labs will continue to run the incineration process.
The process will be carried out in two stages. Initially, Terra will send approximately 1 billion UST from the community pool to an incineration module where it will be permanently removed from supply. The Terraform Labs team will then manually bridge and destroy 370 million USTs from the Ethereum blockchain to Terra.
UST burning approval came one day after Terraform’s LUNA 2.0 plan was approved.
The rebooted chain will go live on Friday and new LUNA 2.0 tokens will be airdropped to holders of the assets.
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