Terra Classic Community Passes Vote Ending USTC Minting as Revival Efforts Continue

Algorithmic stablecoins like USTC are backed by a basket of assets, such as LUNA and bitcoin (BTC), without depending on any centralized third party to hold those assets. Most of the tokens, however, fall victim to a “death spiral” – with outflows or sales of backing assets causing a sudden de-pegging of USTC-like projects.