Terra Classic Community Rejects USTD Stablecoin Proposal Again with Heavy Veto Votes
The Terra Classic community has once again rejected the re-submission of the USTD proposal, which aimed to introduce a decentralized and fully automated yield-bearing stablecoin on the blockchain.
Proposal #12195 went through a week of voting but ended in a decisive veto. The final results show:
- Yes: 7.69% (44.29B LUNC)
- No: 6.16% (35.45B LUNC)
- No with Veto: 54.03% (310.96B LUNC)
- Abstain: 32.12% (184.86B LUNC)
With more than half of the votes cast as No with Veto, the proposal was officially rejected and blocked. Turnout reached 60.49%, surpassing the quorum requirement, but the pass threshold was not met.
Both validators and delegators expressed strong opposition. Of 110 validators, 41 participated in the vote, with 16 casting veto votes. Among delegators, 311 participated and 135 voted to veto. The scale of veto votes underscores broad concern across the community.
The outcome signals that the community is not prepared to adopt a new stablecoin model at this time. Concerns raised included systemic risks to the chain, lack of safeguards, and the readiness of an automated yield-bearing mechanism.
For now, Terra Classic governance remains cautious, prioritizing chain stability and long-term integrity over experimental token models. Future proposals will likely require stronger safeguards and broader community support to move forward.
