• The L1 Joint Task Force (L1JTF) has proposed a test environment specifically geared towards repeging Terra Classic USD (USTC).
• USTC repegging proposals include penalizing USTC holders for selling below its assumed $1 peg, creating a special staking vault, and creating a liquidity pool between USTC and LUNC.
• Some members are opposed to the divergence fees proposed by the L1JTF, as it is unlikely that major exchanges would accept it.

LUNC Community Puts USTC Repeg Ideas into Practice

The embattled LUNC community has witnessed several USTC repeg proposals. Terra Classic USD (USTC) still trades below $0.015, while LUNC inks 1.5% daily gains. The Layer-1 Joint Task Force, a developer team made of Terra Luna Classic (LUNC) holders, has decided to take control of the USTC repeg initiative. Three days ago, the L1 Task Force penned a new proposal on Agora to create a simulation of the malfunctioning stablecoin USTC repeg.

How Would USTC Test Environment Work?

The L1 Task Force is eager to experiment with several ideas described in the Terra Classic network proposals. Firstly, the facilitation of USTC repeg could come with penalizing USTC holders for selling the asset below its assumed peg at $1. Moreover, another USTC repeg proposal suggested creating a special staking vault. With implied divergence fees on trading, USTC staking could be used to reduce the supply of the malfunctioned stablecoin. Finally, after Terra Classic USD (USTC) is back at the $1 peg, LUNC member Redline Drifter offers to create a liquidity pool between USTC and LUNC. Other creative ideas include burning $LUNC and an AI chain app which would substantially boost Terra Luna Classic’s utility. The previous proposal #11462 took care of setting up this test environment without requiring extra funds from developers or holders; work on parity will not be hindered either as it continues to be tested for v2.1 upgrade scheduled for June 14th 2023 .

On the Flipside

Many LUNC community members are opposed to some aspects of these proposals such as divergence fees; they argue that major exchanges would not accept them due to their implications for traders and investors alike. Furthermore another initiative proposing 0.5% burn tax was passed despite opposition from some quarters who argued it was unnecessary given other innovative efforts being explored by developers and members alike .


The ambitious plans set out by members via various proposals must center around helping revive Terra Luna Classics’ utility while ensuring ample caution is taken when considering potential implications such initiatives may have on holders and traders alike .


In order for any proposed initiative or solution aimed at revitalizing Terra Luna Classics‘ network’s utility or reviving its value proposition must consider potential implications before implementation takes place so as ensure fairness among all stakeholders involved .

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