Will Chen, a Terra developer, has recently revealed what he expects to precede TerraClassicUSD (USTC) repeg and Terra Classic (LUNC) recovery.
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.
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.
— 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.
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.”