Terra Classic (LUNC) Community Proposes Crucial Re-Peg Plan for TerraClassicUSD (USTC) to Reach $1
The Terra Classic (LUNC) community has successfully passed a significant proposal aimed at supporting TerraClassicUSD (USTC) in reaching a value of $1. Submitted by the L1 Team, the proposal focuses on creating a test environment to assess the necessary conditions for a successful USTC re-peg event. Additionally, the L1 team plans to release a USTC re-peg roadmap in the third quarter.
One week ago, Proposal 11548 was put forth by LuncBurnArmy (LBA), the L1 Team’s Project Manager, shortly after the Agora text was released. The proposal primarily revolves around the development of a simulated environment, which can be utilized by the L1 Team and other interested parties to test various approaches for re-pegging USTC to the US dollar.
Voting for the proposal concluded today, with overwhelming support demonstrated by the community. Out of 49 validators, 40 voted “Yes,” while the remaining nine abstained. Notably, no validators voted “No.” Prominent validators such as Allnodes and Orion have endorsed the proposal.
Following the collapse of the Terra ecosystem and the de-pegging of USTC, the community has rallied behind a revitalization plan, which includes the re-pegging of USTC to the US dollar. While several re-pegging ideas have been approved by the community, none have been successfully implemented thus far.
The approval of the latest proposal means that the L1 Team will allocate a portion of the Q2 budget to develop the USTC test environment. This environment will allow the L1 Team and other stakeholders to assess USTC re-peg events, providing valuable trial opportunities.
LBA has disclosed that the team will commence the development of the test environment after completing the Terra Classic mainnet upgrade to v2.1.0, which will align the LUNC blockchain with Luna 2.0 and Cosmos networks. The v2.1.0 upgrade is scheduled for June 14, and a proposal for the upgrade has already been initiated.
One of the USTC re-peg ideas that the team intends to test in the environment is the tax divergence protocol introduced by Redline Drifter, a member of the LUNC community. Redline Drifter has mentioned working with the team and the Terra Grant Foundation to address concerns raised by exchanges regarding this idea.
Moving forward, the L1 Team, led by LBA, plans to focus primarily on USTC re-peg work during the third quarter of the year, subject to community consensus. As outlined in a recent Commonwealth text, the team aims to establish a USTC working team and publish a definitive USTC re-peg roadmap in Q3.
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