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Terra Luna Classic Community Want to Repeg USTC Stablecoin After Historic Collapse of UST

Published June 28, 2023 11:23 AM
Teuta Franjkovic
Published June 28, 2023 11:23 AM
Key Takeaways
  • The Terra Luna Classic community endorses the developers suggested for the Quant team and supports the USTC repeg plan.
  • Through initiatives like USTC repeg and co-op with crypto exchanges, Terra Classic devs are working together to revitalize the ecosystem
  • Professionalism and maturity within the Terra Luna Classic community have been questioned.

Core developer teams are moving forward with the USTC (TerraClassicUSD) repeg in a deliberate manner to revive the Terra Luna Classic (LUNC) environment after historical UST collapse.

Just as a reminder, there were three stages to TerraUSD’s (UST) demise. The peg of UST was first broken by two traders; it was then fixed by Terraform Labs and three supporters by buying $2 billion worth of UST; and lastly, the sell-off persisted, depleting those funds, inflating the price of UST’s sister token LUNA, and crashing the price of both LUNA and UST.

It is possible that UST is more brittle than other stablecoin varieties because of its uncollateralized architecture. The current decrease in the cryptocurrency market appears to be more strongly related to the decline in the IT market than to the collapse of UST, despite the fact that redemptions of other stablecoins did briefly peak.

In order to revive USTC’s worth and subtly raise the price of LUNC to the community’s desired aim of $1, the Joint L1 Task Force and RedlineDrifter-led Quant development teams have now joined forces by opening voting on the Terra Luna Classic’s incremental repeg modeling and simulation proposal for the TerraClassicUSD (USTC).

Repeg Is Largely Supported By Community

The initial voting results showed that the community favored both the idea and the Quant team developers who will work on the USTC repeg to $1.

The Quant team will receive assistance from the Joint L1 Task Force (L1TF) developer team on USTC repeg.

A member of the Quant team dubbed RedlineDrifter tweeted  that Proposal 11597 “USTC / Stable Algo Quant Team” is now open for vote. As one of the key proposals for the Terra Luna Classic chain, several community members also contributed the USTC repeg proposal.

The community appeared to favor the modeling and simulation for the USTC Incremental Repeg Buybacks & Staking Swaps plan, as evidenced by the nearly 99% “Yes” votes for the community pool spend proposal. Additionally, the developers suggested for the Quant team have also received community approval.

A number of influential validators, including TCB, Coinpayu, StakeBin, Classy’s Sphere, PFC, and Lunanauts, supported the initiative and voted “Yes.” The voting date for the proposal is July 3, but it appears to pass a quorum before then.

The proposal states that the Quant team will need $20000 in LUNC payment for the first month. RedlineDrifter, Faffy, Alex, Bilbo Baggins, and Kyjack will make up the Quant team. Edward Kim, a professor and main developer for Terra Classic, will work with the group as a volunteer and help with research on the use of AI in backtesting and USTC repeg.

The goal of Quant Team is to improve an already-existing tool, do thorough analysis, and offer insightful information about the algorithm’s advantages and disadvantages.

The Quant team and the L1TF have both suggested working together on the USTC repeg in the interim. In Q3, the L1TF will focus on lowering the supply of circulating LUNC and USTC.

Urging Crypto Exchanges to Support USTC

Recently, the team made the decision to move forward with TerraClassicUSD (USTC) repeg to restore USTC to $1, which will afterwards support the community’s goal of $1 for the LUNC price.

A week ago, RedlineDrifter also addressed the overall situation and stressed the developer teams’ commitment to cooperating in a series of tweets. Their main objective is to urge cryptocurrency exchanges to support the USTC repeg initiatives, in line with the community’s opinion that doing so will help the ecosystem recover.

He disclosed that through the professor Edward Kim-founded Terra Grants Foundation and reXx, the team made contact with significant cryptocurrency exchanges. The majority of exchanges, in fact, responded favorably to Proposal 11487 “USTC Incremental Repeg, Buybacks, Staking, Swaps.”

Due to his involvement in the creation of Terra Classic, L1TF project manager LuncBurnArmy was informed of the technical concerns mentioned by the centralized exchanges to support the idea. Only reXx, LuncBurnArmy, and he, according to RedlineDrifter, were aware of the information. However, LuncBurnArmy has refuted accusations that it leaked private information.

On June 14, Terra Classic received the v2.1.1 software update and with a new record high of 1 trillion, Terra Luna Classic (LUNC) staking has achieved an astounding milestone.

Stakers have successfully staked around 100 million LUNC, or 1 trillion LUNC. As a result of this achievement, the staking ratio increased to a record-breaking 14.61 percent, shattering all previous records. This demonstrates that only 5.8 trillion Terra Luna Classic (LUNC)—out of a total of 6.84 trillion—are now in use.

The price of LUNC dropped 2% in the previous day and is now trading at $0.000090. The low and high values over the past 24 hours are $0.0000902 and $0.0000930, respectively. The price of USTC is currently $0.012, down 1% over the past 24 hours.