Terra Rebels Reveal USTC To Be Terra Classic Reserve Currency

Terra Rebels are set to combine the two competing repeg proposals into the ultimate repeg plan.

In an Ask Me Anything (AMA) session hosted hours ago by WSB Trader Rocko, Terra Classic core developer Tobias Andersen AKA Zaradar, revealed that the Terra Classic developers are working on a new repeg proposal.

According to Zaradar, the new proposal combines his proposal with the one made by Alex Forshaw. Notably, Forshaw and another team member, Max, are working to make this a reality and put to bed the recent debates surrounding the matter.

Unsurprisingly, the new proposal will require no new Terra Luna Classic (LUNC) minting.

“Alex and Max, they will work on an integrated proposal,” said Zaradar. “So we can sort of put that whole debate to rest, and you know, have a shared vision on how to fix this that will avoid printing more LUNC that will avoid neglecting USTC’s role as our reserve currency.”

Additionally, the LUNC core developer asserts that TerraClassicUSD (USTC) will serve as the network’s reserve currency based on this plan. Furthermore, according to Zaradar, the developers will also likely create a commodity token whose sale will help to strengthen the Treasury or community pool further.

“So in the joint proposal, USTC would be the reserve currency for everything,” said the Terra Classic core developer.

It is worth noting that the Terra Classic community has been engaged in debates for the better part of this month over the USTC repeg proposal that had a better chance of succeeding. Notably, the initial proposal from Forshaw evoked mixed feelings as it included a plan to mint more LUNC.

The reaction was unsurprising as bringing down the LUNC supply remains critical to the Terra Classic ecosystem recovery.

Notably, the first indication that developers could combine the competing proposals came when Edward Kim, another Terra Classic core developer, suggested running both proposals in parallel on the testnet.

It bears mentioning that should USTC reclaim the dollar peg, it would exponentially increase the rate of LUNC burns, creating a clearer path for holders to recover lost value. Notably, the USTC de-peg in May led to the Terra ecosystem collapse and wiped off over $60 billion in investor funds.