The Terra governance has voted to approve a proposal to burn 11% or 1.3 billion of the existing TerraUSD in the community pool and liquidity incentives on Ethereum.
Terraform Labs will proceed with the burn after the proposal garnered 99.3% of the total vote cast in its favor. There is currently an 11.2 billion existing UST supply.
The burn is scheduled to be implemented in two phases. The first phase will see 1 billion UST from Terra’s community pool sent to the burn module and permanently destroyed.
The team will implement the second level, bridging back the 370 million UST to Terra from the Ethereum blockchain to be burned.
At the start of the month, the dollar-backed algorithmic stablecoin plunged to 0.04 cents from $1 before bouncing back to $0.07. The drop is about 93% from the value of the dollar parity.
The announcement follows another approval by the community that will see the relaunch of the Terra blockchain and the creation of LUNA 2.0 tokens.
Source: Terra Station