LUNC and USTC Surge as Signal Proposal to Re-peg USTC Passes
Both tokens post double-digit gains despite major crypto assets price correction.
Terra Luna Classic (LUNC) and TerraClassicUSD are up 16.88% and 63.33%, respectively, in the last 24 hours.
It comes as the community passed proposal 11324, a signal proposal for re-pegging USTC, as reported by Wu Blockchain. The proposer Duncan Day asserts that the plan will re-peg the defunct dollar stablecoin on a code and consensus level. Consequently, it describes a procedure to modify the exchange rate and incentivize arbitrage.
As a signal proposal, there are no immediate technical network changes. According to Day, by voting for the proposal, the community pledges to do all it can to enact it.
“The community will enact the Ziggy proposal to the extent that they are capable of, including, but not limited to: financing teams, contributing work (paid or unpaid), altering the proposal for communal benefit, or other relevant tasks,” the author wrote describing what voting in favor of the proposal means.
It is worth noting that re-pegging USTC remains one of the biggest goals of the community, and at least two other proposals have been seriously discussed in the past. One from former Terra Rebels Quant Alex Forshaw, which initially required minting more LUNC, and another from Tobias Andersen, AKA Zaradar, a full-time senior developer in the Joint L1 Task Force.
As last reported, developers were working on a proposal that combined elements of the individual proposals, with Zaradar asserting that USTC would be the reserve currency of the Terra Classic chain.
The latest proposal by Day appears to be different.
It bears mentioning that the de-pegging of the Terra stablecoin sent shock waves through the crypto industry. It led to an excess minting of LUNC, crashing the Terra ecosystem, wiping out at least $60 billion in investor funds, and taking down companies with significant exposure.
Proponents of re-pegging the stablecoin believe that aside from helping holders recover lost value, it will significantly increase the rate of LUNC burns using its original algorithmic peg mechanism. Consequently, it promises value recovery all around for community members. However, it is worth noting that, if possible, it will be challenging.
LUNC and USTC are trading for $0.0002021 and $0.04012, respectively. USTC clinching the $1 price point once more would represent a 2,492.5% upside for token holders.