Can Terra Classic Return to Its Old Days? Interesting Offer from a Community Member

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Terra Classic community member Rex discussed some suggestions that could help LUNC return to $1. sharing made.

Since the Terra crash last May, the community has made various attempts to re-peg USTC to $1 and push the LUNC price above $1. However, these suggestions have proven to be inefficient. To that end, Rex outlined proposals that would help LUNC regain $1.

Rex explained that encouraging the growth of the network will contribute to the LUNC price increase. He explained that the network has attracted interest from developers lately.

If new code for the Terra Classic network is as freely available as when Terra first launched, it will help attract more dApp creators to the network, Rex said.

The network may also be successful in attracting builders by allowing them to whitelist their dApp wallets to avoid paying the applicable burn tax. However, Rex emphasized that the community must support builders to take the initiative.

As part of previous offerings, the Terra Classic community is burning USTC and LUNC tokens. While fans are defending the burning campaign, Rex is among those who think it may not be the best course of action.

There are currently 9.78 billion USTC in circulation. According to Rex, billions of dollars need to be burned in order for the USTC price to reach 1 dollar. However, the probability of this happening is somewhat low.

A proposal to re-pin the USTC is currently being voted on. The proposal aims to increase the price of USTC from $0.01248553 to $1. If this happens, USTC’s market cap will rise to $9.78 billion.

Instead of a direct re-peg, Rex recommends that the Terra Classic community adopt a reverse split mechanism. This mechanism will allow the USTC stablecoin to revalue without increasing its market value.

This means that if you hold $100 worth of USTC (8,012.82 units at current price), you will receive $100 worth of USTC upon reexchange ($1 for 1 USTC).

This reverse split model would keep USTC’s market cap at $97.8 million rather than increasing it to $9.78 billion. USTC holders will also lose the 80x growth that would have increased the price of the asset from $0.01248551 to $1.

Once USTC is pegged again, Rex believes that burning USTC could help push the price of LUNC higher. This will lead to an increase in the value of the Terra Classic pool and bring with it more staking rewards.


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