Alex Forshaw and Edward Kim of Terra Classic Community provided detailed planning of the community-driven network. It revealed a bold attempt to revive the TerraClassicUSD (USTC) dollar peg following the implementation of the 1.2% tax cut on September 20. Forshaw and Kim wrote that the move will stimulate demand for the token among community members and increase network stability and liquidity.
The plan is for the Terra Classic community to vote on a proposal to implement a 1.2% tax cut on September 20th. This will then stimulate demand for the token by increasing network stability and liquidity. To ensure that the network can support this demand, Forshaw and Kim proposed several changes to the network
When USD lost parity with USD and in May, it was unable to recover its losses, so it collapsed. This led to the creation of Luna, now known as Luna Classic.
TerraForm Labs turned off the transfer between LUNC and USTC to avoid extra damage. As a result, the price of LUNC plummeted and has yet to recover.
The role of stablecoins in crypto
Author highlights the importance of decentralized stablecoins in crypto that are censorship resistant and scalable sex. They also explained that the re-pegging will allow USTC to more efficiently burn LUNC tokens through its original algorithmic control.
If we want the dollar peg to work again, the USTC must take steps to prevent re-attacks and have community support. If such an attack happens again, stablecoins can help us avoid this deadly situation from happening again.
The team is confident that if they can get the community to vote for the proposal, they will be able to restore the TerraClassicUSD (USTC) dollar peg and increase network stability and liquidity.
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Qadir Ak is Coinpedia founder of . He has over a decade of technical writing experience, covering the blockchain and cryptocurrency space since 2010. He also interviewed some well-known experts in the cryptocurrency space.