Terra Classic Recent Efforts Could Benefit LUNC’s Growth Potential

Christian Encila

Last Updated: April 28, 2023 10:30 am

4 mins read

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Terra Classic has been doing extensive clean-up work following the Terraport hack which shook the foundation of the ecosystem. This even led to the de-peg of the ecosystem’s stablecoin, USTC, leading to another catalyst for the bears to exploit.

Despite this, Terra Classic is putting in the work to re-anchor USTC to the US dollar.

Recently, a proposal hit the community which could potentially fix the stablecoin situation. Proposal 11487, titled USTC Incremental Repeg, Buybacks, Staking, Swaps, aims to fix the problem through a series of steps that would ensure the stability of the stablecoin.

A Proposal To Fix USTC Fundamentals

According to the Agora post dedicated to the proposal, two systems would be implemented if the proposal was accepted by the community, namely the Divergence Protocol and Protocol Buybacks.

The Divergence protocol aims to work by penalizing sellers that sell the USTC below the current market price. For example, if the seller creates an order to sell USTC at $0.95, he will only get $0.90 in profit as the Divergence fee will be deducted from the transaction.

RedlineDrifter, the mind behind the proposal, also said that the “protocol would be implemented across all USTC trading pairs both on and off-chain but not on regular blockchain transactions.”

This means only trading activity will experience this system and not everyday transactions. The Divergence fee would then be used in the protocol buyback system that would automatically buy back USTC to defend the token’s peg to the US dollar.

Proposal 11487 #USTC Repeg is close to pass.👀#LUNC #LUNCCcommunity #Crypto pic.twitter.com/dcvtH7bw36 #LUNC

— LUNC (@w4kWpWPuDT6CeKG) April 27, 2023

Terra Classic: How Did The Community React?

The proposal was met with a hugely positive outlook by the community. According to a recent tweet, 41.87% voted yes with 49.05% abstained. Only 9.06% voted against the proposal. In the context of LUNC, the hype surrounding the re-peg proposal has been limited.

LUNC market cap at $693 million on the daily chart at TradingView.com

According to CoinGecko, the token’s price only increased by nearly 2% in the past 24 hours. The other timeframes also show a strong bearishness still present on the market for LUNC. CoinGlass data also shows that the bulls only have a slight advantage over the bears.

At the time of writing, the proposal seems to be on the path to being accepted. If the proposal ever gets implemented, it could lead to the possible re-pegging of USTC, bolstering investor sentiment after the disastrous Terraport hack.

Proposal #11487 for #USTC Repeg is passing & I’m happy that atleast Validators voted on it to show good gesture.#LUNCcommunity we need help of all CEXs to Repeg $USTC because it’s huge supplies need huge amount to repeg it.

RT & Follow.#LUNC #LUNCBURN #LUNCARMY #LUNA #USTC

— Saqlain Ali (@SaqlainAli888) April 28, 2023

Along with the decision of South Korean authorities to not consider LUNC as a security, this would help the ecosystem by increasing demand for the crypto.

-Featured image from The Daily Hodl

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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