• The LUNC community has been debating various USTC repeg proposals, with Terra Classic USD (USTC) trading below $0.015 and LUNC inks 1.5% daily gains.
• In response, the Layer-1 Joint Task Force proposed creating a USTC test environment to experiment with ideas such as penalizing USTC holders for selling under the peg price of $1 and creating a special staking vault with implied divergence fees on trading.
• Other creative ideas to help revitalize the deteriorated Terra Classic blockchain include burning $LUNC and an AI chain app, while some members are opposed to the divergence fees as it’s unlikely that major exchanges would accept it.
LUNC Community Debates USTC Repeg Proposals
The embattled LUNC community has witnessed several USTC repeg proposals. Terra Classic USD (USTC) still trades below $0.015, while LUNC inks 1.5% daily gains.
L1JTF Proposes Test Environment for Repeg
In response, the Layer-1 Joint Task Force has put forth a proposal on Agora to create a simulation of the malfunctioning stablecoin’s repeg process in order to experiment with different ideas. This includes penalizing USTC holders for selling below its assumed peg at $1 and setting up a special staking vault with implied divergence fees on trading.
Other Creative Ideas Proposed
Other creative suggestions from LUNC members include burning $LUNC and creating an AI chain app in order to boost Terra Luna Classic’s utility once USTC is back at its peg price of $1, as well as introducing a liquidity pool between USTC and LUNC by member Redline Drifter. The funds needed for this endeavor were already granted through proposal #11462 passed earlier this year which authorized the Joint L1 Task Force team to receive development funds in Q2 of 2023 amounting to $124,000 specifically for work on LUNC’s Layer-1 technology upgrade v2.1 scheduled for June 14th this year.
Opposition to Divergence Fees
Level 1 Task Force team explained that no extra funds would be required to set up a USTC test environment – however many members are opposed to the divergence fees idea due to it being unlikely that major exchanges would accept such terms and conditions attached to their listings and transactions involving stablecoins like USTc .
Despite opposition from some members of the community, several proposals have been put forward by the Layer-1 Joint Task Force aimed specifically at reviving Terra Classic’s USD stablecoin (USTC). These include penalizing those who sell below its pegged value of one dollar, setting up a special staking vault with implicit divergence fees when trading; burning $LUNCs; and introducing an AI chain application in order to increase utility upon reaching its previous price point once more; alongside other creative initiatives suggested by members such as establishing liquidity pools between both coins too .