Terra Community suggests re-associating LUNC and USTC
The LUNC community has passed a signal proposal to re-associate with Terra Classic USD (USTC) through an operational framework. Since the project announced plans to tie the two assets back together, LUNC has gained 18%, while USTC has gained 67.5%.
Bounce back from the code and the consensus level
The Terra community has passed a motion aimed at reconnecting USTC with LUNC. The proposal includes two bounces from the Code, Guidelines, and Consensus Level. The ultimate goal was to recover value after the launch of the “dismissal” event in May 2022. However, signal proposals work in that they do not present immediate technical consequences. Hence, after the vote is completed, the presenter will discuss the way forward with the L1 team.
LUNC’s revival relies heavily on the community’s incendiary efforts. So far, many crypto influencers and YouTubers have joined in to help. Binance is the main shareholder, with more than 50% of LUNC burns. Hence, society seeks to make the cloning process easier through suggestion.
1 USTC is trading at $0.0396; Hence, society wants to re-establish the dollar-for-dollar price through some mechanisms and strategies. Some of the mechanisms include the use of a multi-tiered reserve system where it will hold reserves in multiple currencies and assets to ensure liquidity and stability.
There will also be an interest rate mechanism where you adjust the peg by awarding interest on US dollars as a reserve to incentivize stock holders to hold USTC as the rate rises above $1. In addition, interest will be charged to the USTC when its price falls below $1.
Finally, multiple monsters will provide exchange rate data to reduce the chances of being manipulated by a single oracle. In addition, the oracle will be motivated to maintain the peg through rewards and punishments.
USDT and LUNC prices are on the rise
USTC increased by 53.41% over the past 24 hours, to $0.0396. Over the past week, the stablecoin has grown by 85%. Meanwhile, LUNC is trading at $0.0002025, up 16.37% over the past 24 hours. Over the past week, it has grown by 19%.
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