- LUNC community recently received funding for L1 upgrades.
- Today, the community is voting on a USTC repeg proposal.
- Terra Luna Classic (LUNC) is the top loser of the day.
The vast community behind the fallen altcoin Terra Luna Classic (LUNC) and its malfunctioned stablecoin Terra Classic USD (USTC) is trying to revive the network. Once a prominent blockchain that attempted to challenge the most popular altcoin Ethereum (ETH), the Terra downfall in May 2022 set off a domino effect on the industry, wiping $2 trillion in digital assets.
A year later, Terra (LUNA) is still represented by one of the largest crypto communities. LUNC community recently passed proposal #11462, which enabled the Joint L1 Task Force to receive $124,000 for Layer-1 development for the Q2 of 2023. While this proposal has been already passed with 55.53% members supporting the idea, there’s more important decision making for the embattled community.
The struggling LUNC community is voting on another crucially important proposal to repeg its malfunctioned stablecoin, which still trades below two cents on a dollar.
How Realistic Is USTC Repeg?
The new proposal #11487 is already celebrated in the LUNC community for putting LUNC and USTC back on Twitter daily trends. However, if passed, there’s a fair share of trials and tribulations before the proposal would make any significant difference.
Let’s have a look on how the #11487 would work if passed. Firstly, the proposal by Redline Drifter suggests that revitalisation of the Terra Classic Ecosystem would take off if the transactions on the blockchain would implement divergence fees on trades.
Secondly, the divergence fees on trading would be used to buyback USTC. The automated purchase mechanism would accrue USTC in profit, while 47.5% of the profits would be transferred to a new USTC staking vault. This new staking vault aims to reduce the current USTC supply.
Once the divergence fee and buyback mechanism put USTC back above the $1 peg, another liquidity pool will be launched. Then, the USTC/LUNC liquidity pool will be used to swap between the two crypto assets.
On the Flipside
- Members of the LUNC community are skeptical about enforcing the divergence fees.
- Only 37% of LUNC holders are saying yes to the proposition.
- To pass, the 956 billion vote threshold has to be reached in the next three days.
Why You Should Care
After the Terra Luna crash in May 2022, there’s still a large and active community that is putting significant effort into reviving the once-thriving network.
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