Terra Luna Classic's USTC plan aims to stabilize value with oracle integration and a new burn mechanism.
LUNC price jumps 15% following Vegas Morph's proposal for USTC repeg to $1.
Terra Luna Classic introduces 'kill switch' in repeg strategy to prevent system abuses.
Terra Luna Classic, a popular decentralized financial platform, has introduced a strategic plan to restore the stablecoin’s value USTC to its original dollar value. Vegas Morph, a Terra Luna Classic member and validator, proposed repeg USTC to $1, sparking bullish sentiment in the community and LUNC price increasing 15% in a week.
https://twitter.com/RedlineDrifter/status/1834301316891288034 Validator Proposes Repeg Mechanism
Vegas Morph, a notable validator within the Terra Luna Classic community and a former member of the Terra Rebels developer group, has spearheaded the initiative to stabilize USTC's value. The validator's proposal, detailed in a Medium post, outlines several technical adjustments aimed at reactivating the market module, which is essential for maintaining the peg at $1 per USTC.
The suggested changes include the incorporation of an oracle module to provide real-time price feeds, the implementation of a burning mechanism where 20% of transaction fees are destroyed, and the allocation of the remaining fees to support the peg and oracle operations. Moreover, the proposal advocates for setting a hard cap on the supply of LUNC and USTC to prevent excessive minting, alongside introducing a 'kill switch' for the module to avert potential system abuses.
Community Engagement Fuel Rally in LUNC Prices
This announcement has been closely followed by the official token LUNC, whose price has increased by 15% in the course of a week. This surge saw LUNC trade at $0. 00008733 and it showed an upward mobility of 4% from its 24 hours low price. The trading volume of LUNC has surged by 42%, demonstrating robust trader interest and optimism regarding the proposed changes.
The community's response has been predominantly positive, as evidenced by RedlineDrifter, a member of the Quant USTC repeg team, who emphasized the need for the community to engage proactively with the proposal rather than critiquing it. He suggested a shift in focus from solely implementing a burn tax to fostering intrinsic value through on-chain developments, which were pivotal during LUNA's initial rise.
Terra Luna Classic's Strategic Growth
The proposal by Vegas Morph signifies a crucial step towards stabilizing USTC and potentially restoring confidence in Terra Luna Classic's ecosystem. The program intends to establish a more durable infrastructure that can resist market changes by addressing the technological issues that support the stablecoin's value.
Furthermore, the community's involvement and the validator's openness to feedback suggest a collaborative approach to governance and development within Terra Luna Classic. This may pave the way for more sustainable growth and innovation, as the platform seeks to regain its footing in the competitive landscape of decentralized finance.
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