Terra Luna Classic (LUNC) and TerraClassicUSD (USTC) have continued to attract investor attention since the crash in May 2022. LUNC's price has remained low since then, and USTC has remained below $1.
In this blog post, I will propose a new solution to save LUNC: closed-loop burning and USTC peg.
How the System Works:
USTC Peg: Binance can maintain the peg by selling USTC at a fixed price of $1.
Closed-Loop Burning: Binance can reduce the supply by burning the USTC it sells. This burning process can be funded by a 1.2% tax on each transaction.
LUNC Burning: Burning LUNC to mint USTC can also reduce the LUNC supply. With the current burn rate (0.5%), approximately 100 million LUNC are burned daily.
Advantages of the System:
Can increase LUNC price
Can peg USTC to $1
Can increase investor confidence in both cryptocurrencies
Disadvantages of the System:
Can reduce Binance's profits
Can affect liquidity
Can lead to speculation
Feasibility of the System:
The feasibility of this system is uncertain. #Binance needs to have enough USTC and LUNC to implement this system. In addition, the long-term sustainability of the system is also important.
Columbus-5 Network:
The system I described can reactivate the USTC peg algorithm, the Columbus-5 network, which collapsed in May 2022.
Not Investment Advice:
This information is not investment advice. It is important to do your own research and consider the risks before investing.
Community Reactions:
The LUNC and USTC communities have mixed reactions to this system. Some investors support the system, while others argue that it is risky and will not work.
Supporters' Views:
They believe that the system will increase the price of LUNC and peg $USTC to $1.
They argue that thesystem will increase investor confidence in both cryptocurrencies.
Opponents' Views:
They believe that the system will reduce Binance's profits and affect system can lead to speculation.
Conclusion:
Closed-loop burning and #ustc peg can be a potential solution to save $LUNC . However, the feasibility, sustainability, and regulatory compliance of the system are uncertain. Investors should do their own research, consider the risks, and consider the different views of the community before investing in this system.
Note: This information is not investment advice. It is important to do your own research and consider the risks before investing.
Updates:
Burning rates updated: 0.5% for #Lunc 1.2% for USTC.
More information added on Binance's role and technical challenges.
More details added on community reactions and advantages and disadvantages of the system.
