Ziggy’s proposal on Re-Peg of USTC to its $1 dollar peg has been greeted with immense community support. Previously known as LUNA, LUNC is the remnant native token of the original Terra blockchain, which rebranded to Terra Classic after experiencing a massive collapse. Last year, Do Kwon Terra Luna crashed with many investors losing millions of dollars in Crypto assets. When the Luna crypto network collapsed, it’s estimated that $60 billion got wiped out of the digital currency space.
Algorithmic stablecoins (UST) are not the same as Tether or USD Coin, which are backed by actual dollars or assets stored in a bank. Luna was Terra’s blockchain native token, similar to how ether is used on the Ethereum network. Luna had four different roles in the Terra network:
A method to pay for transaction fees in the Terra network.
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A mechanism for maintaining Terra’s stablecoin peg.
Staking in Terra’s delegated proof of stake (DPoS) to validate network transactions.
Participation in the platform’s governance by adding to and voting on proposals when it comes to changes in the Terra network.
If Terra stablecoins like USTC are not stable, the ability for the LUNC blockchain (Terra Classic) to generate meaningful revenue is extremely limited. Profitability is limited to complex AMM strategies and, primarily, arbitrage. Arbitrage is the simultaneous purchase and sale of equivalent assets or of the same asset in multiple markets in order to exploit a temporary discrepancy in prices. This proposal aims to expedite the process slightly using data-driven parameters across any market servicing Terra assets
Ziggy’s proposal describes an actionable framework for the LUNC Community to re-peg USTC from a code level, a consensus level (both technical and social), and guidelines to do so. While this proposal is a signaling proposal, actionable plans outlined here are enforceable through the Terra Community Trust guidelines. The end goal is to recover the value lost in the May 2022 “de-peg” of SDT from the IMF SDR, which USTC was most affected by, while streamlining LUNC burn processes.
If the LUNC – Inverse H & S breakout and it can stay above $0.000194 convincingly on a daily basis. Technical target is ~ $0.00026. NFA. Looks like the passing of the Ziggy USTC repeg signal proposal is the trigger and the current narrative of the chain.
The peg mechanism for USTC would require there to be a positive price discrepancy between the USTC price and its pegged value in order to burn LUNC. So if the purpose of the Ziggy Re-Peg proposal is to repeg USTC to burn LUNC, LUNC should be pumping right now above USTC.
Time to get pumped $LUNC army! We are going to get everything working again for the blockchain, we are going to repeg $USTC, we are going to come together as a community and we are going to the moon together! SMASH the like button if you believe- an excited community member wrote.
$LUNC was TRENDING on KuCoin Exchange earlier today seems like people are wasting NO time in getting back into Terra Classic with the recent Ziggy proposal on USTC re-peg.
The day is Not over yet. Whenever it pumped and people got excited and bullish, hours later it was Followed by a Heavy knock out. What should it be different this time?