Terra Classic Stablecoin Terra UST (USTC) surges over 66% after receiving governance approval to re-peg the stablecoin.
Similarly, Terra Classic (LUNC) is also up 17.3% in the news. crypto slate data.
Terra Classic Community on January 3rd passed it A proposal to relink LUNA Classic with the depegged USTC stablecoin.
Proposal to relink LUNC and USTC
Following the collapse of Terra empire in May 2022, algorithmic stablecoin UST and sister token LUNA collapsed below zero. In an effort to restore the ecosystem, the token has been rebranded to his LUNA Classic (LUNC) and USTC.
The LUNC community has considered several proposals for returning the USTC to its peg. In the meantime, the proposal to relink the USTC and LUNC has received governance approval.
Community suggestions aim to bring the USTC back to the peg through a combination of strategies including:
- Hold reserves in multiple assets and currencies.
- Implementation of buyback and burn mechanisms to balance USTC supply and demand.
- It pays interest in USD to incentivize holders to hold USTC when USTC is below the peg and charge interest when the price is above the peg.
- Integrate multiple oracle systems that provide exchange rate data to reduce the risk of operating with a single oracle.
USTC is currently trading at $0.0399, but the community is optimistic about the confirmation. suggestion It helps to get the token back to $1.
