According to Terra’s official website, the Terra governance system has voted to approve a proposal to burn all TerraUSD (UST) tokens held in the project’s community pool and deploy UST on Ethereum for past liquidity incentives.
This equates to more than 1.3 billion UST, or about 11% of the existing 11.2 billion UST supply. The proposal passed with 99.3% of the votes in favor. After the vote, Terra’s core development company, Terraform Labs, will execute the burn plan, a two-phase process.
First, it will send ~1 billion UST from Terra’s community pool to a burn module, where it will be permanently removed from the supply. The team will then manually bridge the 370 million UST from the Ethereum blockchain back to Terra and burn it.
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