• Terra proposed burning the remaining UST
  • The proposal received unprecedented support from the community and network validators
  • LUNA was trading down 19.06 percent at $0.000132

The new Terra blockchain that will introduce a new version of LUNA is now live and apart from introducing a new token, the team also revealed its plan for the remaining supply of its algorithmic stablecoin TerraUSD (UST).

Several UST and LUNA holders panicked Thursday after several cryptocurrency exchanges froze Terra transactions in preparation for launching the new version of its native token. Terraform Labs CEO and founder Do Kwon, who floated the revival plan to create a new blockchain, received the majority's support, giving the green light to the project.

Interestingly, this new version of Terra ditches the stablecoin Terra USD, leaving many investors and industry watchers wondering what would happen to the algorithmic coin. During the crash of LUNA and UST, the Terra team proposed several measures, including the emergency proposal to "burn the remaining UST in the community pool."

Terra UST Terra - Twitter

At present, there are 1,017,233,195 UST in the Community Pool, with 12,623,445,466 as of May 12 and the team claimed that "burning the remainder of the Community Pool’s UST will reduce the circulation of UST by roughly 8.05 percent, based on the current supply figures." With the proposal receiving the right of the vote needed to push on, "the 1,017,233,195 UST from the Community Pool will be sent to the Community Core Burn module address below, where it will be immediately burned," Terra said.

Meanwhile, "the 371 million cross-chain UST will be bridged back to Terra and burned by TFL," the team added. However, the team provided a new update saying that the proposal failed to execute.

According to the team, "the original proposal requested to burn 1017233195000000 uusd, since it was the current amount available in the community pool when the proposal was created. Sadly, another proposal (UST Goes Interchain: Polygon Edition) passed, removing 10500000000000 uusd from the community pool."

This means they will use "the actual amount of UST available on the community pool." If the amount in the community pool changes again, "The proposal will fail to execute again, but I don’t see any other “Community Pool Spending” proposals currently active that are likely to pass," A Terra dev who goes by the name AToz said.

LUNA was trading down 19.06 percent at $0.0001322 with a 24-hour volume of $188,636,509 as of 3:50 a.m. ET on Friday based on the data from CoinMarketCap.