Who Holds the Majority of USTC?

Who holds the majority of USTC? The answer may surprise you.

I started with a list of the 50 largest wallets, which combined hold 8,432,934,488 USTC. Total USTC is 9,815,491,846, which means these 50 wallets hold 85.9% of all USTC.

These wallets can generally be broken down into 5 main groupings:

• TFL/LFG/Community (48%)
• Exchanges (25%)
• Bridges (6.75%)
• Unknown Whales (6.5%)
• Every Other On-Chain Wallet (13.75%)

TFL/LFG/Community

The community has a strong claim to at least a large percentage of LFG/TFL holdings, so I have combined these all below as follows.

Exchanges

The exchanges perform most transactions between their users off-chain in their own systems and only rebalance on-chain when necessary, so the majority of the holdings below are individual users’ holdings.

Bridges

Unknown Whales

Conclusion

This leaves every other on-chain wallet with 13.75% of the total USTC supply.

Based on this, the community has a fairly clear claim to roughly 47% of the total USTC supply. LFG has said they would use their 18% holdings to compensate UST investors.

How they move their USTC holding without crashing the USTC price is anyone’s guess. My guess is they burn something like 75% of their USTC and return 25% to small UST holders, maybe.

This still leaves roughly 30%-40% of USTC supply that could fairly quickly be used for burns or development incentives.

This Fixed Peg Proposal could then be used to burn roughly 1,000,000,000 (10%) of the remaining USTC in 90 days.

After 90 days, the remaining roughly ~50% of USTC supply would need to be reduced through debt for equity swaps to an acceptable level. Then a new algorithm can be instituted such as Floating Peg Proposal to move forward.