Terra Classic Community Rejects USTD Stablecoin Proposal
Proposal #12192, which proposed a decentralized, fully automated yield-bearing stablecoin named USTD, has been rejected by the Terra Classic community.
The Terra Classic community has spoken. Proposal #12192, which aimed to introduce a decentralized and fully automated yield-bearing stablecoin called USTD, has officially been rejected.
The proposal generated strong debate, with over 54 comments from both validators and delegators. Despite a significant turnout of 70.53%, the final results fell short of approval.
Voting Results
22.56% (152.63B LUNC)
46.00% (311.20B LUNC)
5.63% (38.11B LUNC)
25.81% (174.61B LUNC)
To pass, the proposal required at least 50% approval. Combined support reached only 30.41%, falling well short of the threshold.
Community Reaction
Voting revealed a clear divide within the community. Many validators and delegators voiced concerns about the risks associated with launching another algorithmic stablecoin in the Terra Classic ecosystem. While a portion of the community viewed USTD as a potential tool to restore on-chain utility and activity, the majority prioritized stability and robust risk management over rapid experimentation.
What Comes Next
The rejection underscores the community’s cautious stance. Attention now turns to future proposals and whether upcoming initiatives can strike a balance between innovation and trust. Developers and proposers will likely need to present stronger safeguards and clearer risk mitigations if they hope to win broader support.