• The Layer-1 Joint Task Force (L1JTF), a developer team made of Terra Luna Classic (LUNC) holders, proposes to create a simulation in order to facilitate USTC repeg.
• This would come with penalizing USTC holders for selling the asset below its assumed peg of $1 and creating a special staking vault with implied divergence fees on trading.
• Other ideas include burning $LUNC and creating an AI chain app, but there is opposition from some members due to the divergence fees.
Terra Classic USD Repeg Initiative
The embattled LUNC community has recently seen several proposals for Terra Classic USD (USTC) repeg. USTC still trades below the assumed peg at $1, while LUNC continues to see 1.5% daily gains. In response, the Layer-1 Joint Task Force (L1JTF), a developer team made up of LUNC holders, proposed setting up a test environment specifically tailored towards facilitating USTC repeg.
The L1JTF’s proposal outlined several features that could be used in this test environment. These include: penalizing USTC holders for selling their assets below its target price; creating a special staking vault with implied divergence fees on trading; burning $LUNC; and introducing an AI chain app to enhance utility on the Terra Luna Classic blockchain. The proposal also stated that no extra funds are needed as they had previously received $124,000 in development funds for work on LUNC’s L1 layer during Q2 of 2023 according to proposal #11462 passed earlier this month.
Opposition From Members
Despite these ideas seeming promising, there is opposition from some members due to the divergence fees which may not be accepted by major exchanges. A 0.5% burn tax proposal was passed despite this concern but it remains to be seen how effective this will be in helping revitalize Terra Classic’s network and thus incentivising more people to join it again as users or miners/validators.
June 14th Upgrade
In addition, the L1 Task Force mentioned that they are continuing testing work on v2.1 upgrade before its expected June 14th launch date while looking forward to seeing what improvements this will bring about in terms of stability and usability when rolled out across all networks running using Terra Luna Classic as their base layer one protocol solution provider.
The situation surrounding USTC is complex yet hopeful given these recent initiatives by dedicated members of the community working together under the guidance of the L1JTF team who have been diligently researching solutions that could help revive Terra Classic USD’s value back up towards its original target peg at $1 per coin once again in future when implemented successfully after thorough testing has been completed first prior launching them live onto mainnet ecosystems powering large scale businesses worldwide relying upon stablecoin pegged digital assets like USDC or TUSD amongst others currently used today within DeFi applications running atop Ethereum based smart contract infrastructure technology stack solutions powered by Solidity language programs written manually or generated using graphical interfaces such as Remix IDE platform enabled toolsets commonly deployed across Web3 development project teams building decentralized finance applications regularly today across all 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