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USTC Repeg Whitepaper Explained: A Pathway to Terra Classic (LUNC) Recovery

Solomon Odunayo — Mon, 25 Nov 2024 10:03:36 +0000

In a recent update, crypto enthusiast WSB Trader Rocko spotlighted the newly released whitepaper for the USTC repeg initiative. The proposal aims to stabilize the Terra Classic (LUNC) ecosystem by introducing significant changes to its stablecoin structure.

This initiative seeks to address the failures of the original algorithmic model and reignite the Terra Classic utility. Rocko provided an in-depth analysis through a video, emphasizing the potential benefits and challenges of the repeg plan.

Key Highlights from the Proposal

The whitepaper proposes the creation of a Collateral Market Maker (CMM) as a replacement for the algorithmic market maker. The CMM introduces capital controls to stabilize the price of USTC and manage its collateral effectively. Key features include:

Collateralization Ratio (CR): Tracks the total USTC supply against yield-bearing deflationary collateral and implements mechanisms to lock the CMM during periods of under-collateralization, ensuring long-term stability.

Rebranding USTC: The plan involves swapping existing USTC for a new token, USTY, with USTC being restarted with zero supply. This rebranding strategy aims to address the volatility and lack of trust in the current system while retaining backward compatibility.

Utility and Rewards: The CMM will mint USTC under specific conditions to funding various ecosystem activities, including burning LUNC, rewarding validators, and generating yields for stakers.

Safeguards: The proposal includes a “kill switch” that locks all swaps during severe market stress, ensuring collateral value remains above predefined thresholds.

Rocko’s Insights

Rocko highlighted the importance of this initiative for Terra Classic’s future. He explained that without a functional stablecoin, LUNC’s growth potential is limited. He also emphasized the need for over-collateralization to prevent a repeat of past failures.

The proposed collateral mix includes yield-bearing assets like Bitcoin, Ethereum, and Binance Coin, and stablecoins such as USDT.

While optimistic about the proposal, Rocko raised some concerns. Firstly, the introduction of USTY could confuse users and complicate branding efforts. Secondly, the feasibility of implementing the proposal within the existing Terra Classic framework requires validation from technical experts.

Finally, he stated that collateral growth and sustainability remain a significant challenge, especially without institutional backing.

Community and Ecosystem Impact

The proposal envisions leveraging decentralized oracles, such as Chainlink, for accurate price feeds and strategic burns to enhance token value.

This aligns with Terra Classic’s goal of fostering a community-driven, decentralized ecosystem. However, the effectiveness of these measures depends on broader market conditions, regulatory clarity, and community adoption.

Rocko also stressed the importance of garnering support from key players like Binance, which has been instrumental in burning LUNC. The success of the repeg initiative could unlock new opportunities for staking, yield farming, and validator incentives, revitalizing the ecosystem.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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USTC Whitepaper Released: Let’s Repeg USTC and Make LUNC Great Again

Tobi Loba — Tue, 12 Nov 2024 03:28:04 +0000

WSB Trader Rocko (@traderrocko), a crypto expert on X, shared the release of the USTC whitepaper. This move by the Terra Classic community marks a significant step towards re-pegging USTC to its intended $1 value.

The document outlines the implementation of a Collateral Market Maker (CMM) designed to stabilize USTC by controlling capital flows.

This approach addresses the failures of the previous algorithmic stabilization methods and provides a structured framework to enhance the stability and value of the stablecoin.

Key Elements of the Whitepaper

Collateral Market Maker (CMM): The whitepaper introduces a Collateral Market Maker (CMM) to control USTC capital flows using a Collateralization Ratio (CR). This ratio is defined as the total supply of USTC divided by yield-bearing deflationary collateral.

Capital Flow Control Mechanisms: The CMM adjusts fees to manage capital outflows during market stress. If the CR falls below the Swap Ratio (SR), the CMM locks until the CR exceeds the Reboot Ratio (RR). This ensures that USTC remains adequately collateralized and stable.

Mint Mechanism for a Reboot: The whitepaper proposes automatically swapping existing USTC to USTY to safely reboot the system. Once the CR is above the Mint Ratio (MR), USTC is minted for purposes such as purchasing and burning LUNC, rewarding validators, and providing yield to stakers.

Economic Theory and Stabilization: The whitepaper leverages economic theories relevant to developing economies to guide the CMM’s design. It acknowledges the failures of algorithmic stablecoins and emphasizes the importance of collateral-backed stability mechanisms.

Potential Impact on Re-Pegging USTC

The goal is to repeg USTC to $1. By using a diversified basket of yield-bearing assets as collateral, the CMM can provide a robust foundation for USTC’s value. This approach ensures that the stablecoin is backed by assets that appreciate over time, enhancing its stability and resilience against market fluctuations.

The whitepaper outlines how validators can use minted USTC to purchase and burn LUNC, distribute rewards, and stimulate economic activity. These incentives align validators’ interests with the broader goal of maintaining the $1 peg, creating a collaborative effort to support the currency’s stability.

The CMM’s fee adjustments and locking mechanisms provide a flexible response to changing market conditions. By automatically adjusting to capital flows, the CMM can mitigate the risks of sudden market shocks and maintain the stablecoin’s peg more effectively than static systems.

The re-pegging of the stablecoin to $1 can also enhance the Terra Classic ecosystem’s economic stability, attracting more users and developers. The proposed Collateral Market Maker (CMM) in the USTC whitepaper offers a comprehensive solution to re-pegging USTC to $1. With support from companies like Binance, USTC might achieve these goals.

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LUNC and USTC Removed from LFG Wallet But Not Burned. Here’s the Significance

Tobi Loba — Mon, 04 Nov 2024 04:00:02 +0000

The Luna Foundation Guard (LFG) reserves have recently undergone significant changes, raising concerns and discussions within the Terra Classic (LUNC) community. Recent data indicates that LUNC and USTC have been removed from the LFG wallet but have yet to be burned.

This development, shared by crypto enthusiast Bleeves Crypto (@BleevesCrypto) on X, has drawn attention due to its potential impact on the market and the broader Terra ecosystem.

Overview of LFG Reserves

Bleeves Crypto shared a screenshot of the LFG Reserves dashboard, showing a notable decline across various assets. The total reserve balance stands at $64.15 million, a 54.3% decrease from the previous day.

Specifically, the reserve balance in Bitcoin (BTC) is $21.69 million, down by 1.9%, while the Terra (LUNA) reserves have dropped by 6.8% to $42.46 million. Other assets such as AVAX and BNB have seen significant reductions, contributing to the overall decrease in reserve values.

The reserve balance breakdown shows that UST constitutes the majority of the reserves at 66.2%, followed by BTC at 33.8%. Although the LUNC and USTC have been removed from the LFG wallet, it is yet to culminate in the anticipated burn.

Implications for the LUNC Community

Terraform Labs CEO Chris Amani confirmed this burn in June, which excited the community and caused a brief surge for LUNC. However, the removal of the tokens without immediate burning has generated mixed reactions.

Historically, significant burns have reduced supply and potential price increases, providing a bullish signal to the market. When Amani shared the news in June, over 6.5 billion LUNC tokens were burned within 24 hours, largely driven by large wallets and movements on centralized exchanges.

This event caused a significant drop in LUNC’s total supply, impacting its market price. However, LUNC and USTC experienced substantial price volatility following the burn. LUNC’s price dropped by 14%, while USTC saw a 3.17% decline.

However, token burns often fuel price increases, and the burns the community anticipates could help LUNC and USTC. At press time, LUNC traded at 0.0000889, showing a 3.38% decline over the past 24 hours, and USTC traded at $0.02201, down 7.12% in the same period.

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Terra Classic Moves to Burn 12 Billion LUNC to Boost Recovery. Here’s how

Solomon Odunayo — Tue, 02 Jul 2024 06:42:43 +0000

In a significant development, the Terra Classic community has proposed a large-scale burn of its cryptocurrency, LUNC, and USTC, aimed at revitalizing the token’s value and stabilizing its price.

The plan involves removing 12 billion LUNC and 68 million USTC from circulation, which would substantially reduce the market supply and potentially impact the tokens’ value.

Background and Context

This proposal comes on the heels of a recent burn that eliminated 6.5 billion LUNC, marking one of the largest removals from circulation to date. The upcoming burn targets tokens held in contracts associated with Lido DAO rewards dispatcher and Anchor bLuna rewards, which have been locked since June 22, 2022. Lido DAO made these contracts non-upgradable and invalidated ownership, leading to the lockup.

The Burn Process and Next Steps

The process of removing these tokens through a burn will be put to a community vote soon. If approved, the burn will take a significant volume of LUNC and USTC out of the market supply, potentially boosting the token’s value.

Additionally, developers within the Terra Luna Classic ecosystem plan further gradual burns of LUNC and USTC, including removing 93 million LUNC and 87 million USTC from the Terra Shuttle Bridge (BSC) contract. This burning mechanism, if implemented, could lead to increased stability in the Terra Luna Classic project.

Impact on Investors and Market

The proposed burn has significant implications for investors and the market. By reducing the supply of LUNC and USTC, the tokens’ value may increase, potentially benefiting investors who hold them. However, the burn may also lead to market volatility, and investors should exercise caution when making investment decisions.

Terra Luna Classic’s bold move to burn a substantial amount of its cryptocurrency demonstrates the community’s commitment to revitalizing the token’s value and stabilizing its price.

The proposed burn has significant implications for investors and the market, and it will be interesting to see how the community vote unfolds and the impact the burn will have on the tokens’ value. In the meantime, data from CoinMarketCap reveals that LUNC and USTC have experienced a 1.13% and 1.59% price decline in the last 24 hours, respectively.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.

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Terra Classic and USTC Prices Following 6.5B LUNC Burn By Terraform Labs

Solomon Odunayo — Mon, 24 Jun 2024 05:36:20 +0000

The Terra Luna Classic ecosystem has been rocked by a significant price drop, following a massive token burn event that saw over 6.5 billion LUNC tokens burned in just 24 hours. This drastic reduction in supply has caused an increased interest among traders, resulting in a remarkable 600% increase in trading volumes over the same period.

Token Burn Initiated by Terraform Labs CEO

The token burn event was initiated by Terraform Labs CEO Chris Amani, who confirmed the burn on social media. This move has led to a substantial decrease in LUNC’s total and circulating supply, resulting in a significant price drop. Large wallets selling LUNC tokens on centralized crypto exchanges have further fueled the selloff.

Binance Leads Burn Count

Binance leads the burn count, with an impressive 60 billion LUNC burned through their monthly burn mechanism. This brings the total burn count to over 123 million LUNC, a significant reduction in supply.

Some speculate that these wallets may belong to individuals linked to TFL and Do Kwon, while others believe that US court filings revealing Milojko Spajic, Prime Minister of Montenegro, as an early investor in Terraform Labs may be connected to the burn event.

Despite the selloff, Terra Classic members remain confident in LUNC’s future price prospects. The impending implementation of Tax2Gas is seen as a positive development, which could lead to increased adoption and higher prices.

Price Drop and Increased Trading Volumes

However, the current price drop has seen LUNC fall by over 14% in the past 24 hours, trading at $0.00007751. Meanwhile, USTC’s price has also fallen by over 3.17%, despite the anticipated significant burn event.

The recent developments have sparked intense interest in the Terra Classic ecosystem, with many eyes fixed on the future trajectory of LUNC and USTC prices.

In conclusion, the massive token burn event has had a significant impact on the Terra Luna Classic ecosystem, leading to a substantial price drop and increased trading volumes.

While the future trajectory of LUNC and USTC prices remains uncertain, one thing is clear — the Terra Classic ecosystem will continue to be closely watched by market participants in the coming days and weeks.

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FTX Announces Debt Repayment Plan, Sparking Hope USTC, LUNC, LUNA

Solomon Odunayo — Fri, 21 Jun 2024 05:57:05 +0000

There is renewed optimism in the crypto landscape following the announcement of a debt repayment plan from FTX, the cryptocurrency exchange that collapsed in November 2022.

If the plan is successful, it could lead to a significant recovery for FTX, and several tokens closely associated with the exchange, including FTT, USTC, LUNC, and LUNA.

FTX Unveils Restructuring Strategy

FTX’s implosion in late 2022 sent shockwaves through the crypto world, resulting in billions of dollars in lost user funds. Now, the exchange is aiming for a comeback through a comprehensive restructuring strategy. This plan centers on resolving a substantial $11 billion debt burden. FTX anticipates asset sales to generate $16.3 billion, potentially enabling near-full repayment to impacted customers.

This news has instilled a sense of hope within the cryptocurrency community. The prospect of FTX regaining its footing and users recouping their losses has ignited significant speculative interest in FTX and its affiliated tokens.

Potential Rebound for FTT

Central to FTX’s recovery efforts is its native token, FTT. The token’s value plummeted after the exchange’s collapse. However, the debt repayment plan could lead to a notable resurgence for FTT. Market analysts like Hanzo believe these efforts could become the catalyst to propel FTT’s price upwards.

Technical analyst Mags has publicly acknowledged FTT’s lack of intrinsic value beyond market speculation. However, they have also revealed accumulating FTT over recent weeks, suggesting a belief in potential price appreciation as FTX’s recovery unfolds.

USTC and LUNA Poised for Revival?

The positive effects of FTX’s revival plan are expected to extend beyond FTT. Tokens like USTC (TerraUSD) and LUNA (Terra) also stand to benefit from the exchange’s return.

USTC, a stablecoin within the Terra ecosystem, experienced significant setbacks following the FTX debacle. However, the potential restoration of market confidence in FTX, fueled by its debt clearance efforts, could lead to renewed confidence in USTC, potentially stabilizing its value.

LUNA, another prominent token within the Terra ecosystem, may also see a positive impact. FTX previously played a vital role in providing liquidity and market exposure for LUNA.

Additionally, historical ties exist between FTX’s affiliate Alameda Research, and Terraform Labs, the entity behind Terra. These factors position LUNA for a potential recovery as FTX reboots its operations.

FTX’s anticipated return signifies more than just resolving its debt. It represents a potential catalyst for a broader revival within the cryptocurrency market, particularly for FTT, USTC, and LUNA. By regaining investor confidence and implementing a robust restructuring plan, FTX has the potential to revive its platform and re-establish its position within the crypto landscape.

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Binance Widens Its Support Net For LUNC, USTC, LUNA, SHIB

Tobi Loba — Mon, 10 Jun 2024 05:42:48 +0000

Binance Gulf, a joint venture between Binance and Gulf Energy, announced an expansion of its Thailand-based crypto exchange, Binance TH. The move aims to increase user options by listing new cryptocurrencies and supporting existing tokens on additional networks.

Through an official announcement on June 8, Binance TH revealed plans to introduce trading pairs for ten trending cryptocurrencies starting June 11th, 2024.

This lineup includes established names like Terra Classic (LUNC), Terra (LUNA), and Shiba Inu (SHIB), alongside promising newcomers such as Celestia (TIA), Wormhole (W), and Bittensor (TAO). The addition of these tokens caters to the growing domestic demand for a wider range of crypto assets.

The new listings are LUNC/USDT, LUNA/USDT, USTC/USDT, TIA/USDT, AR/USDT, TAO/USDT, W/USDT, TRB/USDT, JTO/USDT, and TNSR/USDT.

Certainly, this expansion favors the Terra ecosystem, as three of its tokens are listed here. Binance has consistently supported the Terra Classic ecosystem revival, performing massive token burns and other initiatives. This positive news might bring some gains to the Terra ecosystem tokens, bringing them closer to their goal.

Expanding Network Support for Existing Tokens

Beyond new listings, Binance TH supports existing tokens by integrating them with additional blockchain networks. This will allow users to trade these tokens on alternative platforms with potentially faster transaction speeds and lower fees.

Here’s a breakdown of the announced network additions:

Ethereum (ETH) will be listed on Base, Arbitrum, and Optimism networks.
Tether (USDT) will be listed on Arbitrum, Optimism, and Avalanche C-Chain networks.
Waves (WAVES) and Shiba Inu (SHIB) will be listed on Binance Smart Chain (BSC).

This network expansion provides users greater flexibility and potentially improves their trading experience by offering a broader selection of blockchain environments. The changes will take effect on June 11, 2 PM Thailand time (7 AM UTC).

Potential Strategic Timing from Binance?

The announcement of these developments by Binance TH comes just a day before the anticipated settlement between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs. The timing could signal Binance’s confidence in the future of the crypto market, the listed tokens, and the Terra ecosystem.

While the broader crypto market has experienced a 24-hour drop of 0.66% due to a selloff, many in the community remain optimistic about a rebound. This news from Binance and the expected settlement on June 12 might help the market bounce back.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.

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Why Terra Classic (LUNC) and USTC Prices Soared

Solomon Odunayo — Sun, 24 Mar 2024 16:52:49 +0000

The prices of Terra Classic (LUNC) and USTC recently experienced significant increases. This comes after the Supreme Court of Montenegro ordered the release of Do Kwon, a co-founder of Terraform Labs, and postponed extradition requests.

Despite Terraform Labs and Kwon having severed ties with the Terra Classic network, this event spurred notable gains for the tokens.

Positive Momentum for LUNC and USTC

News of Do Kwon’s release ignited a surge in buying activity within the cryptocurrency market. This enthusiasm was reflected in the performance of LUNC, which experienced a substantial 20% price increase according to CoinMarketCap.

While some profit-taking has tempered the initial spike, LUNC currently trades at $0.000155. The token’s trading volume also saw a dramatic 200% increase, though this has since moderated to a still-impressive 53% gain over the last 24 hours.

The positive momentum extended to USTC, which climbed 12% to reach $0.0301 briefly. Though the price has slightly retreated, USTC maintains a 3.51% increase. This bullish sentiment is further evidenced by a 20% rise in total USTC futures open interest across various cryptocurrency exchanges.

Market Data Analysis

Data from CoinGlass demonstrates a substantial increase in 1000LUNC futures open interest on Binance and Bybit, reaching a 40% peak. Other exchanges saw a similar surge in LUNC futures, exceeding 35% in the past day. Currently, a decline in both 1000LUNC and LUNC futures is evident as some traders are liquidating their positions.

Upcoming Upgrades and Developments Drive Optimism

The Terra Luna Classic chain anticipates a significant upgrade in the coming week. A key highlight of this upgrade is the implementation of IBC-Hooks, which will facilitate the seamless onboarding of decentralized applications (dApps) onto the network.

Furthermore, Genuine Labs is expected to share crucial updates aimed at enhancing the security, functionality, and interoperability of Terra Luna Classic. The development team aims to finalize all improvements, including an upgrade to Cosmos SDK 0.47, within 8 weeks.

The combination of these developments and the rising number of wallets holding LUNC signals a positive outlook for the chain. Developers and projects are increasingly expressing interest in building on Terra Luna Classic.

It’s important to exercise caution in the cryptocurrency market. Prices are inherently volatile and subject to swift fluctuations.

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LUNC and USTC Set To Explode? Terra Classic Launches Game-Changing Recovery Proposal

Tobi Loba — Thu, 07 Mar 2024 07:03:11 +0000

The Terra Classic community is actively engaged in reviving the network and its native tokens, LUNC and USTC. A recent upgrade proposal submitted by Terra Classic developer Till “Fragwuerdig” Ziegler outlines significant changes aimed at improving overall functionality and security to potentially boost token values.

Ziegler’s proposal centers on upgrading the Terra Classic Terrad client to version 2.4.0. This upgrade introduces several key improvements:

IBC-Hooks and Package Forward Middleware (PFM): Developed collaboratively with Genuine Labs, these features enable the onboarding of Decentralized Applications (dApps) that leverage IBC-Hooks, particularly Enterprise DAOs. This fosters a more diverse and robust network ecosystem.

End-to-End (E2E) and Interchain Testing Suite: Genuine Labs is also contributing an E2E and Interchain Testing Suite, facilitating improved testing efficiency and ensuring smoother network operation.

Enhanced Security Measures: The upgrade addresses a critical bug related to MsgExec processing within the Tax Handler. This, along with other security improvements spearheaded by Ziegler, strengthens the overall security posture of the Terra Classic network.

Community Backing Drives Progress

The Terra Classic community has shown a strong commitment to the network’s revival. In February 2024, the community finally approved the proposal to burn the 800 million USTC from the Risk Harbor multisig wallet, causing a 25% surge. This collective action highlights the community’s dedication to fostering growth within the Terra Classic ecosystem.

Potential Price Impact

Although LUNC rose when the proposal was announced a few days ago, their prices have dropped with the rest of the market after Bitcoin fell from its new all-time high of $69,170.63 on March 5, 2024.

USTC has also shown signs of price recovery. The ongoing focus on development improvements, coupled with community backing, suggests that LUNC and USTC prices may continue to rally soon.

If both validators and the community approve the proposal, the Terra Classic chain is scheduled for a halt on March 25, 2024, at block height 17309500. This halt will facilitate the implementation of the proposed upgrade.

The Terra Classic community’s proactive approach to network upgrades and token value restoration is a positive indicator for the future. The proposed upgrade, if approved, has the potential to significantly enhance the network’s functionality, security, and appeal to developers. In addition, three developments that could send LUNC to $0.01 after the Bitcoin halving were also revealed recently.

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USTC Surges 25% as Terra Classic Passes Proposal to Burn 800 Million USTC

Tobi Loba — Wed, 28 Feb 2024 08:01:41 +0000

The Terra Classic community has greenlit a proposal to burn 800 million USTC, a significant development following extensive debate. This decision, documented in Proposal 12073, aims to reduce the circulating supply of USTC, potentially impacting its price in the long term.

Proposal Details and Community Vote

Proposal 12073 garnered significant community participation, exceeding the necessary “pass threshold.” This vote authorized the burning of 800 million USTC, valued at approximately $32 million, from the Risk Harbor multisig wallet (formerly known as the Ozone Protocol multisig wallet).

Here’s the voting breakdown:

Yes: 40.90%, No: 7.32%, No with veto: 7.82%, Abstain: 43.96%

Among the 58 participating validators, 42 voted in favor, while 11 abstained, and 5 voted against or with a veto. Notably, top validator Allnodes abstained, allowing the community to proceed with the burn. The proposal received overwhelming support when it was launched, and now the community can destroy the tokens.

Burning Mechanism and Potential Impact

The approved proposal lets the community use code to migrate the 800 million USTC from the Risk Harbor multisig contract to a new code version through a contract migration proposal.

This process leverages a migration handler, which automatically handles any applicable taxes associated with the burn transaction. As emphasized by Fragwuerdig, a former developer for the Joint L1 Task Force (L1TF), this methodology will not alter the overall state of the Terra Classic blockchain.

Burning a significant amount of USTC could potentially influence its price by reducing supply, potentially leading to increased scarcity. Token burning is the primary strategy to increase LUNC’s price. However, it is crucial to acknowledge that the long-term impact on the price remains uncertain and is subject to various market forces.

Market Reaction and LUNC and USTC Price Movement

Following the proposal’s approval, the price of USTC experienced a temporary surge of 25%, reaching a high of $0.040. Although it has dropped 4.53% over the past 24 hours, USTC is still up 19.48% from the past week. The stablecoin is currently trading at $0.03535.

LUNC is trading at $0.0001297, showing a 6.88% increase over the past week and a 1.14% increase over the past 24 hours. This upward movement potentially reflects renewed investor confidence, and with more proposals on the way, we could see more surges soon.

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