The Terra Luna Classic (LUNC) community is making a determined effort to revive the ecosystem, aiming to restore the peg of its stablecoin, TerraClassicUSD (USTC), to $1. This ambitious undertaking follows the de-pegging incident in May 2022 that caused a significant loss of value for the project.
A critical step in this direction is the development of a comprehensive system to maintain the USTC peg. The community has initiated discussions and incentivized developers with a $250,000 bounty, potentially growing to over $1 million, to create a robust and sustainable solution.
This system is envisioned to be decentralized, secure, and transparent, addressing the vulnerabilities that led to the original de-pegging event. Following the submission of detailed whitepapers by developers, selected proposals will undergo a community review and a governance vote.
Despite some skepticism expressed on social media, the initiative has sparked optimism within the LUNC community. At the time of writing, LUNC is experiencing a slight price increase of 1.56% in the last 24 hours, currently trading at $0.00007848. This uptick coincides with a $14 million trading volume and a market cap of $426 million.
While the current sentiment surrounding Terra Classic is neutral according to the Fear & Greed Index, the project has a long road ahead. LUNC reached an all-time high of $119.01 in April 2022 but subsequently plummeted to a low of $0.00001651. Its current price reflects a fraction of its former glory.
Also Read: Terra Luna Classic (LUNC) Community Votes on Crucial Website Proposal
Another proposal on the table seeks to revitalize LUNC’s potential by increasing the on-chain tax burn rate from 0.5% to 1.5%. This initiative, proposed by validator JesusisLord, aims to accelerate the reduction of LUNC’s circulating supply, potentially increasing its value.
The Terra Luna Classic community’s efforts to revive the ecosystem and restore USTC‘s peg are a testament to its resilience. Whether these initiatives will translate into long-term success remains to be seen, but they represent a proactive approach to addressing past challenges.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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