Terra’s governance system voted to approve a proposal to burn all TerraUSD tokens (USTs) in the community pool and issued as part of the latest round of liquidity incentives on the Ethereum blockchain.
According to CoinGecko, this represents more than 1.3 billion USTs, or about 11% of the existing 11.2 billion USTs.
The proposal was voted in favor by 99.3% of the participants.
The combustion process would take place in two stages.
First, about a billion USTs from the community pool will be moved to the incineration module. Then the team will move 370 million USTs from Ethereum back to the Terra network and perform the burn in the same way.
This week’s vote also approved a proposal to restart the Terra blockchain and issue Luna 2.0 tokens. The tokens of the new network will be distributed to the asset holders of the old version based on established criteria. There are no plans to reinstate UST on the new network.
The launch of the new network will take place today, May 27.