Terra Classic Recent Efforts Could Benefit LUNC’s Growth Potential
April 28 2023 - 6:30AM
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Terra Classic has been doing extensive clean-up work following the
Terraport hack which shook the foundation of the ecosystem. This
even led to the de-peg of the ecosystem’s stablecoin, USTC, leading
to another catalyst for the bears to exploit. Despite this,
Terra Classic is putting in the work to re-anchor USTC to the US
dollar. Recently, a proposal hit the community which could
potentially fix the stablecoin situation. Proposal 11487, titled
USTC Incremental Repeg, Buybacks, Staking, Swaps, aims to fix the
problem through a series of steps that would ensure the stability
of the stablecoin. Related Reading: Shiba Inu Whales Unload
Billions Amid SHIB Price Retreat A Proposal To Fix USTC
Fundamentals According to the Agora post dedicated to the
proposal, two systems would be implemented if the proposal was
accepted by the community, namely the Divergence Protocol and
Protocol Buybacks. The Divergence protocol aims to work by
penalizing sellers that sell the USTC below the current market
price. For example, if the seller creates an order to sell USTC at
$0.95, he will only get $0.90 in profit as the Divergence fee will
be deducted from the transaction. RedlineDrifter, the mind behind
the proposal, also said that the “protocol would be implemented
across all USTC trading pairs both on and off-chain but not on
regular blockchain transactions.” This means only trading activity
will experience this system and not everyday transactions. The
Divergence fee would then be used in the protocol buyback system
that would automatically buy back USTC to defend the token’s peg to
the US dollar. Proposal 11487 #USTC Repeg is close to
pass.👀#LUNC #LUNCCcommunity #Crypto pic.twitter.com/dcvtH7bw36
#LUNC — LUNC (@w4kWpWPuDT6CeKG) April 27, 2023 Terra Classic: How
Did The Community React? The proposal was met with a hugely
positive outlook by the community. According to a recent tweet,
41.87% voted yes with 49.05% abstained. Only 9.06% voted against
the proposal. In the context of LUNC, the hype surrounding the
re-peg proposal has been limited. LUNC market cap at $693
million on the daily chart at TradingView.com Related Reading: Why
Coinbase CEO Believes SEC’s Crypto Warning Is Harmful To The US
According to CoinGecko, the token’s price only increased by nearly
2% in the past 24 hours. The other timeframes also show a strong
bearishness still present on the market for LUNC. CoinGlass data
also shows that the bulls only have a slight advantage over the
bears. At the time of writing, the proposal seems to be on
the path to being accepted. If the proposal ever gets implemented,
it could lead to the possible re-pegging of USTC, bolstering
investor sentiment after the disastrous Terraport hack. Proposal
#11487 for #USTC Repeg is passing & I’m happy that atleast
Validators voted on it to show good gesture.#LUNCcommunity we need
help of all CEXs to Repeg $USTC because it’s huge supplies need
huge amount to repeg it. RT & Follow.#LUNC #LUNCBURN #LUNCARMY
#LUNA #USTC — Saqlain Ali (@SaqlainAli888) April 28, 2023 Along
with the decision of South Korean authorities to not consider LUNC
as a security, this would help the ecosystem by increasing demand
for the crypto. -Featured image from The Daily Hodl
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