Why USTC Supply Increases ? UST Classic Supply saw a remarkable rise by 1,925,986 USTC following a swapping transaction on MYTC/USTC pair.
The Terra Classic Community has recently voted for the “tax and burn” proposal which aims to decrease supply amount for both LUNC and USTC. The proposal was put into effect by September 20, 2022.
However the recent increase in USTC supply has surprised holders while they were expecting gradual decrease in supply as per tax and burn mechanism.
The algorithmic link between USTC and LUNC has been removed to disable the minting function for both tokens. However this does not apply to other coins deployed on the network which includes MYTC. That means swapping transaction between MYTC and USTC as well as other tokens except for LUNC will cause USTC minting.
On the other hand, swapping between LUNC and USTC won’t mint new tokens.
