Terraform Labs Proposed to Burn Around 1.39B $UST as Emergency Action

Terra twitted that the prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA. The primary obstacle is expelling the bad debt from $UST circulation as soon as possible. Apart from Prop 1,164 which has been live, Terraform Labs is initiating three emergency actions: proposal to burn the remaining $UST in the community pool; burning the remaining 371 million $UST cross-chain on Ethereum; Terraform Labs just staked 240 million $LUNA to defend from network governance attacks. Approximately 1,388,233,195 $UST will be eliminated from the $UST supply upon executing the proposal above, which equates to roughly 11% of the outstanding supply. The proposal will be immediately initiated as an on-chain vote.