The resubmission of the USTD proposal, aiming to create a decentralized and fully automated yield bearing stablecoin on Terra Classic, is heading toward rejection as the voting period nears its end. With just over three hours remaining, the results show strong opposition from the community.
Current voting data indicates:
- Yes: 8.30% (44.28B LUNC)
- No: 6.66% (35.52B LUNC)
- No with Veto: 55.09% (293.81B LUNC)
- Abstain: 29.95% (159.75B LUNC)
The turnout stands at 56.04%, surpassing the required quorum. However, the high percentage of No with Veto votes makes the proposal rejection almost certain. Out of 110 validators, only eight supported the initiative while fifteen voted to veto it. Among delegators, 132 also vetoed the proposal.
Supporters of USTD argued that such a stablecoin could restore on chain utility and generate yield for participants. But many in the community remain cautious, citing the risks associated with introducing another algorithmic stablecoin after the collapse of UST in 2022.
The expected rejection highlights the Terra Classic community preference for security and sustainability over experimental approaches. Whether future proposals will adapt to these concerns or explore alternative directions remains to be seen.
