After the broadly publicized collapse of Terraform Labs’ stablecoin TerraUSD (UST) and its native token Terra (LUNA), the stablecoin now under the name TerraClassicUSD (USTC) has seen its price rally to a monthly high as the Terra Classic community welcomes the re-peg proposal.
Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, submitted a proposal on October 9 that outlines a solution to the problem of enormous amounts of uncollateralized Terra Classic’s USTC stablecoin and the hyperinflated supply of LUNC.
In the aftermath, TerraClassicUSD price rallied to a new monthly high; the cost of USTC, Terra Classic’s algorithmic stablecoin, has climbed by over 37.44% and is now trading at $0.04057 on October 10, up from $0.02989 just a day earlier.
In the last day, STC has added $106 million to its market worth, according to data retrieved by Finbold from CoinMarketCap.
Similarly, the Terra Classic (LUNC) token, which represents the native governance and utility digital assets of the Terra Classic network, saw a slight increase in value; LUNC is currently trading at $0.000317, increasing a little over 4.38% in the last 24 hours.
Andersen’s Terra proposal
Andersen, who calls himself a “die-hard lunatic,” wrote in a post on Medium that he is doing everything in his power to “help heal the community and fix that which was abandoned by its creators.”
The blockchain developer wants, among other things, to reduce the enormous amount of debt accumulated in May 2022 during the collapse of the Terra Classic ecosystem, which saw $60 billion wiped from the market between LUNC and USTC.
Andersen wants to recapitalize USTC using quantitative easing and tightening measures, but he won’t get into the specifics of how this would work. In addition, he thinks that the re-pegging of USTC to its initial value of $1 is of utmost significance for the long-term prospects of Terra Classic.
After the mishap in May and the subsequent prosecution of Do Kwon and other project founders by Interpol, it is possible that the future of the project may not go as planned.
However, the recent flurry of upbeat news about Terra Classic, such as the newly introduced LUNC tax system and the de re-peg plan, together with an active community, may have a chance of reviving the Terra Classic ecosystem.
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