The Terra Luna Classic community, an active group of supporters and developers, is currently embroiled in a debate over the allocation of 800 million USTC tokens linked to the Ozone Protocol. This contentious discussion emerged due to concerns about the deviation of the Ozone Protocol project from its proposed development plan.
A prominent community member, Vegas, has proposed two potential courses of action for these tokens: returning them to the Terra Classic community pool or sending them to a burn address.
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Ozone Protocol’s Failure to Meet Development Expectations
Vegas, formerly part of the Ex-Terra Rebels developer group, has taken the initiative to bring this matter to the forefront. He believes that the 800 million USTC tokens should be reabsorbed into the Terra Classic community pool because the Ozone Protocol project has failed to adhere to the proposed development plan.
Additionally, Vegas requests ongoing support from the community fund to underwrite Ozone indefinitely, unless an alternative counter-proposal gains traction.
My core mission is to uphold what is right and just. Central to this mission is the restoration of funds to their original source. By achieving this,we will get even more, wewill be able to fund the development of the Chain and take out of circulation approximately 10% of the…
— Vegas (@VegasMorph) July 26, 2023
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As per the proposal, the Ozone protocol, initially envisioned by Terra co-founder Do Kwon, received funding from the community pool. Ozone V1 and Ozone V2 demonstrated great potential through their underwriting capacity, yet the Risk Harbor team responsible for managing these funds has not utilized the intended 1 billion UST fully.
Consequently, Vegas argues that these funds should be returned to the community pool in order to serve the best interests of the Terra Luna Classic community.
Conflict of Opinions: Burning Tokens or Returning to the Community Pool
Alex Forshaw, a former Terra Rebels member and co-author of the Terra Classic Revival Roadmap, presents a divergent viewpoint. Forshaw believes that the idle USTC tokens would be better suited for burning rather than returning them to the community pool.
He argues that validators and stakers, who have a strong influence on the market, are likely to dump the tokens, thus devaluing the efforts of the USTC team.
However, he also proposes a middle ground where a portion of the tokens can be burnt, strengthening the narrative around repegging, while the rest can be returned to the community pool.
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Potential Impact on LUNC and USTC Prices
The ongoing deliberations regarding the fate of the 800 million USTC tokens inevitably raise questions about the potential impact on the prices of LUNC and USTC.
In the past 24 hours, the price of LUNC has experienced little or no change, currently trading at $0.000081. The token’s price volatility is reflected in its 24-hour low of $0.00008083 and high of $0.00008244, according to CoinMarketCap.
On the other hand, USTC has witnessed an upward trend, with its price trading at $0.01613, reflecting a 1% increase over the past 24 hours and a substantial 30% surge within a month. The trading volume has also seen notable growth, rising by 50% during the same 24-hour period.
The Terra Luna Classic community finds itself at a crossroads, weighing the pros and cons of returning 800 million USTC tokens from Ozone Protocol to the community pool versus burning them.
While Vegas argues for their return to restore the balance, Alex Forshaw believes burning the tokens would be more beneficial for the community. As these discussions evolve, the prices of LUNC and USTC will likely be influenced by the outcome.
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