• The L1 Joint Task Force (L1JTF), a developer team composed of Terra Luna Classic (LUNC) holders, has proposed a USTC test environment to facilitate the repeg of Terra Classic USD (USTC).
• The proposal suggests penalizing USTC holders for selling the asset below its assumed peg at $1, creating a special staking vault and creating a liquidity pool between USTC and LUNC.
• Many LUNC community members are opposed to the divergence fees, as it’s unlikely that major exchanges would accept it.
L1JTF Proposes USTC Test Environment
The Layer-1 Joint Task Force (L1JTF), a developer team made of Terra Luna Classic (LUNC) holders, has decided to take control of the USTC repeg initiative. Three days ago, the L1 Task Force penned a new proposal on Agora to create a simulation of the malfunctioning stablecoin USTC repeg. The proposal suggests penalizing USTC holders for selling the asset below its assumed peg at $1, creating a special staking vault and creating a liquidity pool between USTC and LUNC.
Proposed Ideas for Revitalizing Terra Classic Blockchain
Besides facilitating the repeg of USTC, other creative ideas to help revitalize the deteriorated Terra Classic blockchain have been proposed by members of the LUNC community. These include burning $LUNC and an AI chain app which would substantially boost Terra Luna Classic’s utility.
Funds Allocated for Setting Up Test Environment
The previously passed proposal #11462 allocated $124,000 in development funds for work on LUNC’s Layer-1 in Q2 of 2023 – these funds are being used to set up the test environment with no additional funding required.
Opposition to Divergence Fees
Many LUNC community members are opposed to divergence fees related to trading as it is unlikely that major exchanges would accept them. Despite this opposition, however, the 0.5% burn tax proposal was still passed.
The Layer-1 Joint Task Force is continuing their efforts towards setting up an experimental environment geared towards repeging USTc while working towards upgrading parity on June 14th.. Additionally, members have proposed various ways of reviving Terra Classics blockchain alongside introducing divergence fees which many oppose due to lack of acceptance from major exchanges