Terra Luna Classic Developers Engage in Fiery Debates Over LUNC/USTC Market Swap
Terra Luna Classic developers are embroiled in intense discussions as they explore ways to implement the highly-anticipated LUNC/USTC market swap function. Volunteer developer Igor Veras proposed a LUNC mint limitation on the main market module to test the idea. Veras is expected to collaborate with the Layer-1 Joint Task Force Team (L1JTF) and the USTC Quant Team to set up a testing environment. However, some prominent members of the Terra Classic community believe Veras was pressured into abandoning his idea.
JESUSisLORD, a major validator, shared the events that led to Veras giving up on the proposal. The change in Veras’ behavior reportedly came after discussions with the USTC Quant Team, who questioned the proposal’s significance.
How Powerful Is LUNC/USTC Market Swap Initiative?
Proposal #11767 initially garnered support from the Terra Classic community. However, leading developer Vinh Nguyen from L1JTF raised concerns that the market swap feature could negatively impact staking rewards and cause disruption for delegators and validators. Restoring the market swap functionality would decrease the circulating supply of Terra Luna Classic (LUNC) and the malfunctioning stablecoin Terra Classic USD (USTC), enabling the creation of new trading pairs on Astroport or Terraswap. Additionally, the market swap function is expected to increase the burning of LUNC and USTC tokens.
While the motives behind opposing the proposal remain unclear, members of the Terra Classic community argue against intimidation in their active crypto community. It is uncertain whether Veras or the Layer-1 Joint Task Force Team will proceed with testing the mint limitation safety feature for the market maker algorithm.
On the Flipside
The market swap function was disabled after the 2022 financial fiasco, which resulted in the UST stablecoin losing its $1 peg. The proposal could play a pivotal role in the restoration efforts for Terra.
Hot Take:
The debates and controversies surrounding the LUNC/USTC market swap function in Terra Luna Classic highlight the passionate and engaged nature of the crypto community. It is essential for developers and stakeholders to collaborate and find solutions that benefit the overall ecosystem while addressing concerns about potential disruptions. The restoration of the market swap functionality could have significant implications for the circulating supply of LUNC and USTC, as well as the burning of tokens. The outcome of these discussions will shape the future of Terra Luna Classic and its role in the broader cryptocurrency landscape.
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