Terra Luna Classic Takes Steps to Repeg USTC

• The Terra Luna Classic community is working to restore the value of its stablecoin, USTC, to $1 peg.
• In addition, the Terra Luna Classic community is contemplating raising the tax burn rate from 0.5% to 1.5%.

Terra Luna Classic is going the extra mile in efforts to restore its stablecoin USTC to its original $1 peg. Redemption awaits, as this step would be significant for the Terra Luna Classic ecosystem, which has since faced challenges following the de-pegging incident that led to a massive loss of value.

The Terra Luna Community has initiated talks to develop a comprehensive system to restore the USTC $1 peg. As per our earlier report, the recent bounty announced for developers has proven the growing urgency to revive LUNC and reestablish its stablecoin. To supercharge the development of this system, the community announced a $250,000 bounty, with the latter potentially moving the stake to over $1 million. 

Wary of the past, they’re looking for a lasting pact. The LUNC community wants to create a robust, decentralized, and secure system to maintain USTC’s peg to the USD, avoiding the pitfalls that led to the previous de-pegging. 

Following the proposed opening, developers will be required to present detailed whitepapers for consideration. Selected proposals will, after that, undergo a community review process followed by a governance vote. Though the idea has faced some negative feedback on social media, NB-Crypto highlighted that the system must ensure, stability, security, transparency, decentralization, and scalability.

Following the announcement, optimism has been ignited. At the time of writing, LUNC is swapping hands with $0.00007848, marking a 1.56% surge in the last 24 hours. This has led to a $14 million trading volume in the last 24 hours, leaving LUNC’s market cap at the $426,809,316 mark.

LUNC’s circulating supply also stands at 5.79 trillion LUNC, with a maximum supply of 6.88 trillion LUNC. Notably, the annual supply inflation rate is -0.31%, meaning that 17.87 billion LUNC have been removed from circulation in the past year. 

Reminiscing, Terra Classic reached an all-time high of $119.01 in early April 2022 but plummeted to an all-time low of $0.00001651 just a month later. Since then, LUNC has achieved the highest price of $0.00059, while the lowest was $0.00001651.In addition to the current sentiment surrounding Terra Classic being neutral, the Fear & Greed Index is standing at 31, indicating a state of Fear.

To revitalize LUNC’s potential, the Terra Luna Classic community is contemplating raising the tax burn rate from 0.5% to 1.5%. This proposal was brought forward by Terra Classic validator JesusisLord, who seeks to increase the on-chain tax rate. According to a recent CNF report, the proposed change would keep the burn tax rate current until the total LUNC supply reaches 10 billion tokens, a threshold established during the initial burn tax mechanism integration.