The price of Terra (LUNA) Classic ($USTC) has surged after its community approved the Terra (LUNA) Classic 11324 proposal to “Re-Peg USTC With LUNC,” which describes a way for the community to assist $USTC’s price reattain its peg.
Reports by the proposition, $USTC having a stable price is critical for the Terra (LUNA) Classic network to “generate meaningful revenue,” and reveals that reneging crypto stablecoins like USTC sees the community renege “one of its most potentially [sic] methods of making money: algorithmic foreign exchange trading and remittance.”
The proposition reads:
If Terra (LUNA) crypto stablecoins like USTC are not stable, the potential for the LUNC blockchain tech ( Terra (LUNA) Classic) to generate meaningful revenue is incredibly limited. Profitability is limited to complex AMM strategies and, primarily, arbitrage (…)This proposition intends to expedite the procedure slightly using data-driven parameters across any market servicing Terra (LUNA) assets.
The proposition is a “signaling proposal,” which implies that it will not altering the code just is still, and has the goal of restoring value lost in the May 2022 collapse, which saw the then- Terra (LUNA) network collapse, with the network’s main assets becoming nearly worthless in a short amount of time.
Following the collapse, the original Terra (LUNA) ecological system rebranded to Terra (LUNA) Classic, while a new, forked blockchain tech took the Terra (LUNA) brand with it. When Terra’s ecological system collapsed, its circulating supply jumped from 340 Million crypto tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2 percent tax burn on all transactions conducted on the network.
Following the proposition was approved, $LUNC’s price surged around 25%, before a correction started. The digital currency is at the time of publication up around 11 percent in the last 24-hour period. Over the same period, the network’s $USTC crypto token, which lost its peg to the United States dollar during the collapse, has been growing by around 46%.
The price boost was met with a 75 percent surge in open interest for $LUNC. Open interest, it’s worth noting, represents the number of unsettled derivatives contracts for the investment, and is used to measure how much money is flowing into the market.
Binance Crypto exchange has been supporting the network’s crypto token burns, and in its third batch of burns it destroyed 2.5 Billion tokens, permanently removing them from circulation in a single transaction. According to information from Binance’s pages, at the time of the burn, the $LUNC crypto tokens were worth nearly $660,000 and were burned as a response to the $LUNC community’s proposition on burning trading charges on-chain.
As already stated, the Terra (LUNA) Classic community has been battling for increased adoption and even created a petition to get listed on digital currency exchange Coinbase.
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