• The LUNC community has proposed several USTC repeg initiatives, as Terra Classic USD (USTC) trades below $0.015.
• The Layer-1 Joint Task Force (L1JTF), a developer team of LUNC holders, decided to take control of the USTC repeg initiative by creating a simulation test environment.
• This test environment would potentially help revive the malfunctioning stablecoin with measures such as penalizing USTC holders for selling below its peg and creating a special staking vault.
The Struggling LUNC Community
The embattled LUNC community has witnessed several proposals targeted at helping its struggling stablecoin Terra Classic USD (USTC). Despite daily gains of 1.5%, USTC still trades below $0.015 – prompting members to come up with creative ideas on how to improve the situation.
The Formation of the Layer-1 Joint Task Force
In response to this situation, the Layer-1 Joint Task Force (L1JTF) was formed – consisting of Terra Luna Classic (LUNC) holders who decided to take control of the USTC repeg initiative by creating a simulation test environment specifically geared towards improving it.
Proposed Solutions for Repeg and Revival
This simulated environment would potentially help revive the malfunctioning stablecoin through various measures including penalizing USTC holders for selling below its assumed peg at $1 as well as creating a special staking vault with implied divergence fees on trading that could reduce the supply of USTC tokens in circulation. Other ideas floated by the team include burning $LUNC tokens and developing an AI chain app that would boost Terra Luna Classic’s utility once again. Despite not requiring any extra funds, these solutions have been met with resistance from some members who are against imposing divergence fees due to exchanges’ unwillingness to accept them.
Passage of Proposal #11462
In order to facilitate these ideas, proposal #11462 was passed which allotted $124,000 worth of development funds toward work on LUNC’s Layer-1 blockchain in Q2 2023 – ensuring that no additional resources are needed for setting up this simulated environment.
All in all, while there is opposition towards certain aspects of reviving USTC such as divergence fees, it is clear that much progress can be made via simulations and further research into reviving this malfunctioned stablecoin asset in order to get it back up at par value again.