The Terra Classic layer-1 development team led by the pseudonymous user LuncBurnArmy is on course to boost the value of TerraClassicUSD (USTC) to make it a proper stablecoin yet again.
Recall that USTC, formerly known as UST, lost parity with the dollar in May 2022 and since then several proposals have been brought forward by members of the LUNC community.
In a recent development, the USTC re-peg proposal submitted for voting by the leader of the L1 Task Force LuncBurnArmy (LBA) last week, received tremendous support from the Terra Classic community. This support comes as USTC achieving parity with a dollar would increase interest in the once-broken blockchain, leading to a considerable increase in the value of LUNC.
Notably, Proposal 11548 which seeks to simulate a USTC test environment passed governance voting in the early hours of today with 40 validators, including Allnodes and Orion ticking “Yes.” While nine validators abstained from voting on the proposal, it bears noting that no validator voted “No.” In total, 49 validators voted on the proposal.
As stated in the proposal’s Agora text, the L1 Task Force would use part of the already provisioned development funds to build a test environment for USTC. In doing so, the team will be able to recreate a simulation of the USTC depeg and repeg event while also testing strategies for maintaining the USTC peg.
Among the repeg ideas to be put to trial in the planned USTC test environment is the one proposed by the user Redline Drifter. The LUNC community member proposed the use of a divergent fee protocol and buy & burn mechanism to peg USTC with $1.
It’s worth noting that this anticipated development would only take place after the L1 Task Force completes the Terra Classic mainnet upgrade to v2.1.0, which is slated for June 14. This upgrade aims to bring the LUNC blockchain to parity with the Luna 2.0 and other Cosmos networks.