Key Points:
- The Terra Classic community has adopted a new proposal to re-peg the USTC with LUNC.
- According to the developer, this proposal is intended to speed up the process a bit using data-driven parameters across any marketplace serving Terra assets.
- More than 21% of the voting community opposed the proposal.
On February 3rd, the Terra Classic 11324 community proposal “Re-Peg USTC With LUNC” was approved. This proposal describes a framework for the LUNC community to rebind USTC from the code, consensus, and guideline levels.
According to reports, the proposal is signaling, meaning there are no immediate technical consequences to either way of voting – yes or no won’t change anything in the code.
Specific action plans will be implemented through Terra Community Trust 23 guidance, with the ultimate goal of restoring value lost in the May 2022 crash while simplifying the process of destroying the LUNC.
According to the proponent, the proposal is intended to speed up the process using data-driven parameters across any marketplace serving Terra assets.
“If Terra stablecoins like USTC are not stable, the ability for the LUNC blockchain (Terra Classic) to generate meaningful revenue is extremely limited. Profitability is limited to complex AMM strategies and superior arbitrage. Arbitrage is the simultaneous purchase and sale of equivalent or the same asset in multiple markets to exploit a temporary discrepancy in prices.”
The vote results could have been better, as more than 21% of the community disagreed with the proposal with concerns that it would not perform well due to the collapse of UST-LUNA just a short time ago short time and the inherent weaknesses of UST since depeg.
However, the proposal also became a driving force for USTC and LUNC to witness the increase again. LUNC is now up 20% to $0.002056. Besides, USTC spiked 70% to $0.04097.
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