• The LUNC community has proposed several USTC repeg proposals, and the Layer-1 Joint Task Force has decided to take control of the initiative by creating a simulation of the malfunctioning stablecoin USTC Repeg.
• This test environment would penalize USTC holders for selling below its peg at $1, as well as create a special staking vault with implied divergence fees on trading and a liquidity pool between USTC and LUNC.
• Other creative ideas to help revitalize Terra Classic blockchain include burning $LUNC and an AI chain app, however some members are opposed to the divergence fees.
LUNC Community Puts USTC Repeg Ideas into Practice
The embattled LUNC community has witnessed several USTC repeg proposals in order to get Terra Classic USD (USTC) back to its assumed peg at $1. In response, the Layer-1 Joint Task Force (L1JTF), a developer team made up of Terra Luna Classic (LUNC) holders, has decided to take control of the initiative by creating a simulation of the malfunctioning stablecoin USTC Repeg.
How Would USTC Test Environment Work?
The L1 Task Force is eager to experiment with several ideas described in the Terra Classic network proposals. Firstly, they plan on penalizing USTC holders for selling their asset below its peg at $1. Secondly, another proposal suggests creating a special staking vault with implied divergence fees on trading which could be used to reduce supply of the malfunctioned stablecoin. Finally, after Terra Classic USD (USTC) is back at its $1 peg, LUNC member Redline Drifter offers to create a liquidity pool between USTC and LUNC which would promote further adoption and thus utility for both projects. Additionally other creative ideas such as burning $LUNC and an AI chain app have been suggested in order to help revitalize Terra Luna Classic’s blockchain.
No Extra Funds Required
Fortunately no extra funds will be required in order to set up this test environment – this was taken care of when proposal #11462 was passed three days ago authorizing the Joint L1 Task Force team with receiving $124 000 in development funds for work on LUNCs Layer 1 in Q2 2023.
Opposition from Some Members
Despite all these efforts there are still some members who oppose them – mainly due to their belief that major exchanges would not accept any form of divergence fees meaning that this penalty system would be irrelevant anyway. This was seen when proposal 0.5% burn tax was passed despite opposition from those members who were against it.
Conclusion
Overall it seems like significant progress is being made in regards to helping revive Terra Classic networks functionality through initiatives such as diverging fees on trading or creating liquidity pools between both projects‘ tokens – all while being mindful about not overspending funds provided by proposal #11462 which could hinder future developments instead of enabling them within this ecosystem