A new proposal to re-peg TerraUSD stablecoin (USTC)
Proposal 11487 aims to bring USTC stablecoin back to $1 value but needs major Terra classic community support.
TerraUSD was the top 3rd ranked stablecoin by market cap, before May 2022. In May of the last year, Terra (Luna) & TerraUSD (UST) stablecoin collapsed badly. Later Terra project team renamed TerraUSD into TerraUSD classic (USTC) and further relaunched the Terra blockchain with a new Luna coin, without any concept of the stablecoin.
Recently a proposal (11487) was submitted to bring USTC stablecoin back to $1 value. Under this proposal every USTC seller would pay a fee equal to the difference between the market and the target price and the revenue generated through this strategy will be further used to buy back USTC. In this way, on one side USTC will not face sell pressure and on the other side, people will buy more & more USTC with the expectation to gain profit.
This proposal required full support from the Terra classic community and if the proposal passed then a new rule of trade fees will be applicable on all the crypto trade platforms, except usual network transactions.
USTC will also impact staking systems, where 47.5% will be sent to a new USTC staking vault aimed at reducing USTC’s circulating supply.
If the whole plan to re-peg USTC succeeded then in that situation a new USTC/LUNC liquidity pool would be opened, and 47.5% of the accrued profit would go into this new pool in a one-way swap of LUNC to USTC.
Note: Core Terra crypto project team Terraform labs no longer support this crypto project. Terra’s classic crypto empire is fully backed by the Lunc community & some leading crypto companies e.g Binance, Huobi Global, etc , to help the Lunc Investors.
USTC price
This submitted proposal failed to grab attention & also failed to impact the pegged value of USTC stablecoin, as we can see in the graph.
Lunc coin
The current trade price of the Lunc coin is $0.000185 & also this token failed to saw pump because of this proposal.
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