Now, in a bid to rectify the situation, the USTC repeg team has resubmitted the proposal, emphasizing the need for significant turnout from validators during this revote.

Read Also: Terra Classic Passes Proposal to Burn 800M Tokens To Aid USTC Repeg and LUNC Recovery

USTC Relegates Proposal 11730 for Community Voting

Proposal 11730, titled “USTC / Stable Algo Quant Team,” has been reintroduced for community voting from the 26th of August until the 2nd of September. With the Station wallet now functioning as intended after a prolonged period of downtime, the USTC repeg team hopes to foster a more robust turnout of validator votes, culminating in a more conclusive outcome.

A representative from the LUNC community expressed the necessity of resubmitting the proposal, stating, “Quant Team is too nice and proud to re-submit it, so somebody has to do it. This time, since TS is working again, we can expect proper validator voting turnout and live with the final results.”

The LUNC proposal 11730, intended to fund the USTC Quant Team for the month of August, is currently open for voting.

$LUNC proposal 11730 to fund the $USTC Quant Team for the month of August is now live for voting. The author states due to Terra Station being down during the last vote proper validator turnout was not received and this will be the official decision. #Crypto #LUNC pic.twitter.com/FosK8ROK0C

— Mr. Diamondhandz1 (@MrDiamondhandz1) August 26, 2023

Read Also: Terra Classic Faces Market Turmoil, Rejects Key Proposal, Whales Dumping LUNC and USTC

Hexxagon Facilitates Proposal Advancement

Hexxagon, the sponsor of the USTC proposal, has settled the outstanding balance necessary to push it forward for governance voting on Terra Station. Concurrently, they have shown their support by voting in favor of the proposal, appealing to the Terra Classic community for their endorsement.

We’ve paid the remaining balance on Proposal 11730 to get it out of the deposit stage! We’ve also voted Yes!!! We hope you join us in supporting the teams working on #LUNC #USTC #LUNCARMY pic.twitter.com/E2ctjCIZFz

— Hexxagon (@hexxagon_io) August 26, 2023

The proposal has so far received 43% Yes, 28% No, and 29% “No with veto” votes. Amongst the validators, nine showed support, while six rejected the proposal. The JESUSisLORD validator cast a “No with veto” vote, citing unprofessional and dangerous behavior as grounds for dissent.

The community had previously rejected the proposal through governance voting. However, members of the USTC Quant team placed the blame on certain validators, accusing them of manipulating the outcome.

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The post USTC Repeg Proposal Rejected By Terra Classic Has Been Reintroduced. Here Are Details of the Proposal appeared first on Times Tabloid.

According to a recent report, the proposals that are meant to return and burn 800 million USTC have been officially passed by the community. The approval of these proposals implies that the community has favored sending the whopping tokens to the dead wallet over returning them to the community pool.

Read Also: Binance CEO’s Disclosure of LUNC Holdings Revives Hope of Terra Classic Recovery and USTC Repeg

Howbeit, another proposal that aims to split the 800 million USTC into two is in the works. It aims to burn 80% and send the rest to the community pool. So, the Terra Classic community members need to wait patiently for a few days.

About the Two Proposals

Proposal 11658 named “Return of Community funds not used”, which was introduced by Vegas, a former member of the Terra Rebels developer group, was passed with 70.27% “Yes” votes.

The proposal is meant to return 800 million USTC on-chain funds to the Terra Classic community pool due to the failure of Ozone Protocol to stick to the proposed development plan.

The second proposal (11660), which has also been passed with 82.55% “Yes” votes, was introduced to counter the recommendation Proposal 11658. It aims to destroy all of the 800 million USTC tokens.

So, counter Proposal 11660 is expected to be considered due to the larger percentage of Yes votes.

Read Also: 1.6 Million USTC Going to Terra Classic Grants Program As Proposal Passes with Massive Support

As aforementioned, the community needs to wait for another proposal that suggests the split of the 800 million tokens. While 80% is destroyed, 20% will be moved to the community pool for developers, says the proposal.

It is worth noting that the proposal is still live for voting. It has managed to attract only 46% yes, indicating the possibility of rejection.

The designated team has already started preparing to return the funds as the community decided.

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The post LUNC and USTC to $1? Terra Classic Community Officially Passes Proposal to Burn 800M USTC appeared first on Times Tabloid.

The proposal has been met with mixed reactions from community members. Some have expressed support for the proposal, arguing that burning a large chunk of USTC would help to restore the stablecoin’s value. Others have argued that all 800 million USTC tokens should be burned, as sending any to the community pool would only serve to dilute the supply.

Read Also: Binance CEO’s Disclosure of LUNC Holdings Revives Hope of Terra Classic Recovery and USTC Repeg

The proposal is currently being voted on by the Terra Classic community. If it passes, it would be a significant step towards reviving the USTC stablecoin. It implies that 80% of the 800 million USTC (640 million USTC), will be destroyed. While the remaining 20% (160 million USTC), is expected to be sent to the Terra Classic community pool.

$LUNC community, an important proposal has come to light!

80% of the 800 million $USTC burned and 20% of the 800 million $USTC to the community pool (prop 11671)

This is the best middle ground that benefits both the community and the developers.

I'm voting yes! pic.twitter.com/njCWmTh3xm

— Levi (@LeviRietveld) August 3, 2023

USTC Quant Team Makes Progress on Repegging

In other news, the USTC Quant Team has made significant progress on the repegging of the stablecoin. The team has initiated a direct line of communication with Binance and is working on a number of other initiatives to restore the value of USTC.

The repegging of USTC is a top priority for the Terra Classic community. If the stablecoin is able to regain its peg to the US dollar, it would be a major boost for the Terra ecosystem.

Read Also: LUNC to $1 Target on Course as Binance Discusses USTC Repeg Initiative with Terra Classic Team

The Future of TerraClassUSD (USTC)

The future of USTC is uncertain, but the recent proposal to burn 640 million tokens is a positive sign. If the proposal passes, it would be a significant step towards restoring the stablecoin’s value.

As aforementioned, the repegging of USTC is also a top priority for the Terra Classic community, and the USTC Quant Team is making progress on this front.

Only time will tell whether USTC will be able to regain its peg to the US dollar. However, the recent developments are good indications that there is hope for recovery.

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The post This USTC Revival Proposal Sparks Debate in Terra Classic (LUNC) Community appeared first on Times Tabloid.

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.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

Read Also: Terra Classic Proposal for Community-Owned Wallet Passed, LUNC and USTC Surge

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

Read Also: Terra Classic L1JTF Proposes a Community-owned Mobile Wallet and L2 Team. Here’s why

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.

Read Also: Terra Classic (LUNC) Core Developers Resign Amidst Community Backlash: Details

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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The post LUNC and USTC to $1? Terra Classic Considers Burning 800 Million USTC Tokens: Details appeared first on Times Tabloid.

Accordingly, the LUNC Layer-1 Joint Task Force has proposed a stunning way to attempt repegging USTC. Per the proposal submitted on Monday by the team lead LuncBurnArmy, the L1JTF seeks community approval to use the already provisioned compute budget to develop the test environment for USTC repeg ideas. 

Part of the proposal read: “This proposal seeks the authorization and use of already provisioned compute budget for the purposes of establishing a test environment specifically geared toward testing USTC repeg ideas. As a result, this proposal is a text proposal, and no additional community spend is required currently. It should be noted that only compute budget would be allocated for this item.”

1. #LUNCCommunity please see the following proposal which would authorize the L1 Task Force to build a USTC test environment. Note: We are focused solely on parity right now, and this will not take any time away from that effort con't. https://t.co/CEtEXF3LQe

— LuncBurnArmy (@luncburnarmy) May 23, 2023

By creating a test environment, the Terra Classic (LUNC) Layer-1 Joint Task Force hopes to decipher the actual circumstances behind the fall of the supposed algorithm stablecoin, how it could have been stopped, and how to trigger a future repeg. In other words, the development team aims at recreating a simulation of the USTC depeg event, creating a simulated repeg event, and testing strategies for maintaining the USTC peg.

Particularly, the aim of creating a simulated depeg event is to identify possible capital controls that could have prevented the “death spiral” following the USTC depeg (e.g., capping maximum supply). Also, the team plans to conduct a series of transactions to confirm the behavior of LUNC and USTC mint/burn behavior. 

As per the proposal, the LIJTF plans to build upon the many USTC repeg proposals that passed governance voting including Redline Drifter’s suggestion to use a tax divergence strategy and buyback mechanism to attempt repegging USTC.

However, the pseudonymous project lead stressed that the team is currently focused on attaining parity for Terra Classic and the Cosmos blockchains. Accordingly, he added that work on the USTC test environment will only begin once the v.2.1.0 upgrade is completed, probably on June 14. Notably, Terra Classic v.2.0.1 upgrade was executed on May 17. Consequently, the LUNC tax burn increase from 0.2% to 0.5% went live with top exchanges announcing support and implementation. 

3. We continue to test the v2.1.0 upgrade to parity, and are looking forward to the upgrade on June 14th!

— LuncBurnArmy (@luncburnarmy) May 23, 2023

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The post Terra Classic (LUNC) Layer-1 Team Working to Bring USTC to $1. Here’s the Latest Effort appeared first on Times Tabloid.

Recall that a prominent LUNC community member known as Redline Drifter submitted an equitable proposal early this month in a bid to get TerraClassicUSD (USTC) re-pegged to the dollar. The concerned community member stressed the need to support the signal proposal, stating that next month will make it one year since the supposed stablecoin de-pegged and negatively affected the price of LUNC. 

As per the proposal, Drifter stated two uncommon approaches that could be adopted by the Terra Classic community to make USTC a stablecoin once again. And they included an algorithm peg divergence fee protocol and a LUNC buyback mechanism. 

By divergence fees, Drifter suggests that sellers who try to buy USTC below $1 would be levied a fee depending on the difference in the buy price from $1. The proposal also states that 45% of those procure divergence fees would be used to buy LUNC and then burn them, helping to reduce the hyperinflated supply of LUNC.

Deeming these approaches to be promising and feasible, the Terra Classic community has passed Drifter’s proposal after 49.24% of voters voted “Yes” on the signal proposal, at the time of writing. While 6.68% of the total votes voted ‘”No”, others including top validators such as Allnodes and LUNC DAO abstained from voting. 

These top validators and other LUNC community members rejected the proposal, citing that centralized exchanges such as Binance may not support the ideas presented by Drifter. Notably, the USTC re-peg proposal would require CEXs to implement divergence fees on USTC sell orders below or above $1. 

While these CEXs are yet to respond to the proposal, the LUNC community is hopeful that Binance, the largest LUNC burn contributor would support the re-peg proposal. Because re-pegging USTC to a dollar, coupled with the massive LUNC burns and other solid Terra Classic ecosystem developments could put LUNC in the $1 direction.

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The post Is LUNC to $1 Mission Still Feasible As Terra Classic Passes USTC Re-peg Proposal? Details appeared first on Times Tabloid.

Notably, May 2023 will mark a calendar year since USTC lost parity with the dollar, leading to the hyperinflated supply of Terra Classic (LUNC). Since then, several USTC repeg proposals have been introduced by different community members with most of them failing to pass governance voting. Meanwhile, the few which passed governance voting are yet to be fully implemented. 

Accordingly, Redline Drifter recently rolled out Proposal 11487, outlining an approach to revitalize the Terra Classic ecosystem in an equitable manner that will appeal to both USTC and LUNC holders. As per the signal proposal, the two approaches suggested by Drifter to re-peg the supposed stablecoin USTC include the implementation of an algorithmic peg divergence fee and a buyback protocol. 

“The Divergence Protocol works by charging an algorithmic/ dynamic fee equal to the difference in price between the peg and market price. The fee can range anywhere from 0% at peg to 100% fee at a 50% deviation from peg. Basically the greater the difference in price from peg and market price, the more you will be punished and the higher the fee you will pay,” Drifter wrote. 

Thereafter, the funds derived by charging divergent fees on all USTC trading pairs both on and off-chain except for regular transactions such as purchasing products/ services or sending money between wallets will be used to buy back USTC.  “The fees then retained by the protocol are used to buyback USTC and maintain the peg,” part of the proposal read. 

However, for these approaches to be implemented and perhaps get USTC re-pegged, the signal proposal must cross the pass threshold. But at the time of writing, it is yet to get the needed support from the Terra Classic community. So far, 51.39% of votes on Proposal 11487 indicate “Yes” while 21.61% of voters are opposing the proposal and many other voters including Allnodes and LUNC DAO have abstained from voting.

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A fresh report showed that the Gary Gensler-led SEC filed a lawsuit against Do Kwon and TFL on Thursday over the failure of UST — now represented as USTC — in May 2022. This adds to the list of different individual and class action lawsuits slammed against the on-the-run CEO, Do Kwon. 

Particularly, the securities watchdog charges the above-mentioned defendants because they disobeyed the registration and anti-fraud provisions of the Securities Act and the Exchange Act. The SEC filed the crypto lawsuit in the U.S. District Court for the Southern District of New York

The SEC contends that the Singapore-based blockchain company and its CEO orchestrated a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin (UST) and other crypto asset securities. 

SEC Chair Gary Gensler said, “We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” said SEC Chair Gary Gensler. “We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.”

Per the update, the financial regulator which recently fined Kraken $30 million for offering an unregistered security staking program added that “Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions.” 

Notably, this lawsuit comes nine months after TerraClassicUSD (USTC), formerly known as TerraUSD (UST) depegged and lost parity with a dollar due to an error in project management and many other unclear factors. 

The dramatic collapse of this supposed stablecoin led to the massive plunging of its sister token LUNA (now called LUNC). Roughly $40 billion was lost in the immediate Terra ecosystem whereas the incident wiped out about 60 billion dollars from the broader crypto market.

The present woes of Celsius Network, Voyager Digital, and Three Arrows Capital (3AC) were caused by the depegging of UST. Hopefully, the SEC is able to get justice for the many victims of the Terra ecosystem meltdown.

LUNC is yet to recover from the historic crash it recorded. But the project which is now community-led is slowly revitalizing as many notable developments surround it including the Terra Classic token burning initiative to reduce the asset’s total supply to 10 billion and staking to increase token scarcity.

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The post SEC Sues Do Kwon and Terraform Labs Over TerraUSD (UST) Stablecoin Collapse appeared first on Times Tabloid.

Notably, this surge in the price of USTC came amid the market-wide correction, triggered by the recent regulatory clampdown on the stablecoin BUSD, wholly owned by Paxos.

CZ Admits TerraClassicUSD (USTC) has the Right Vision

The entire fiat-backed stablecoin market seems to be at risk following the latest regulatory attack on the Binance-branded stablecoin BUSD, issued and managed by a top centralized crypto trading platform, Paxos. 

On Sunday, the United States Securities and Exchange Commission (SEC) threatened Paxos with a lawsuit over BUSD. Shortly after this, the New York Department of Financial Services (NYDFS) per a public alert “ordered Paxos to cease minting Paxos-issued BUSD as a result of several unresolved issues related to Paxos’ oversight of its relationship with Binance regarding Paxos-issued BUSD”. 

From the foregoing, a top crypto analyst stressed the need for a stablecoin that is not fiat-backed. That is an algorithmic-based stablecoin that is likely beyond the reach of regulators. TerraClassicUSD (USTC) formerly known as TerraUSD (UST) is a typical example of an algo-based stablecoin. Unfortunately, the asset depegged in May 2022, losing parity with the dollar. 

According to a widely followed crypto pundit and DeFi enthusiast, Miles Deutsche, USTC had the right vision but was managed poorly by Do Kwon and TerraForm Labs. He said, “UST (now USTC) had the right vision all along.” “It was just executed poorly. But the need for a robust decentralized stablecoin hasn’t gone away,” he added. 

Among those who reacted to this Monday tweet was Changpeng Zhao (CZ), the CEO of Binance and founder. CZ Binance admitted that the idea behind the supposed stablecoin TerraClassicUSD (USTC) is what the current crypto industry needs, considering the growing attack on fiat-backed stablecoins. “Sad but true,” was the response from CZ. 

sad but true.

— CZ Binance (@cz_binance) February 13, 2023

At the time of writing, USTC is trading for $0.03 per coin with a 1.3% decline in the last 24 hours.

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The post Terra Classic USD (USTC) Sees Substantial Rally after Binance CEO’s Comment: Details appeared first on Times Tabloid.

According to Chen in a tweet on November 28, USTC repeg may be possible if the community’s efforts make significant progress or gain momentum.

Read Also: Like Terra Classic (LUNC), CoinMarketCap Now Updates TerraClassicUSD (USTC) Supply Every 2 Hours

The Terra developer believes any significant progress in the UST repeg efforts will aid LUNC growth as the “nonbelievers” will be surprised and more people will have the faith to join.

Chen further noted that the USTC repeg mission is the first of its kind ever attempted by a community.

Will Chen tweeted, “The USTC repeg is the first time something like this at this scale has ever been attempted by a community. Like LUNC, once the communal effort to repeg USTC makes progress / momentum that defy the odds and surprises all the non-believers, everybody will want to join in.”

The $USTC repeg is the first time something like this at this scale has ever been attempted by a community.

Like $LUNC, once the communal effort to repeg $USTC makes progress / momentum that defy the odds and surprises all the non-believers, everybody will want to join in.

— Will Chen (@stablechen) November 28, 2022

It’s worth noting that several proposals have been submitted in efforts to repeg USTC, but as of press time, the details of its progress remain scanty.

Read Also: Terra Classic Casino in LUNC Burning Spree in Just Four Days of Launch: Details

Some Terra Classic community members such as Tobias Andersen, who is also a Terra developer, had proposed that the dream repeg could be achieved by attracting new businesses to the Terra Classic blockchain.

For Will Chen, the challenge remains one of arbitrage and dilution. As one user puts it, “There’s no way to undo the dilution there. It’s astronomical. a pipe dream.”

“It’s likely that the community will have to make some difficult compromise,” Chen responded. “I think the teams working on this are aware of several challenges, like the threat of arbitrage and dilution.”

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