Developments in the Terra Classic network have been coming at a rapid pace despite being community owned with no VC funding.
The Terra Classic chain has had a turbulent year and has grabbed headlines for numerous reasons, from bucking the bearish crypto market trend early in the year and creating new highs on the promise of decentralized crypto money at scale to collapsing spectacularly in May.
Now, however, it is grabbing headlines because of its budding community that has taken over the helm, charting a path to recovery and lost glory.
Notably, since taking control of the chain, the community has wasted no time trying to tackle its major pain points. In no particular order, these include reducing the excess Terra Luna Classic (LUNC) supply, re-pegging TerraClassicUSD (USTC), fixing the chain, and creating and attracting utility.
It is worth noting from the end of August through September, the network reintroduced staking and faced the problem of significantly reducing the LUNC supply with a 1.2% on-chain tax while lobbying crypto exchanges to implement the tax on off-chain transactions. For its efforts, Binance, the world’s largest crypto exchange, kicked off a campaign to burn all trading fees obtained from LUNC trading activity.
Notably, October was rife with even more developments and heated debates, as can be expected with a community-run chain.
The first issue members of the community sought to address in October was how it would repeg the defunct stablecoin and make holders whole. To this end, the community got to all appearances, two distinct proposals leading to heated debates on Twitter. Finally, however, developers volunteering to rebuild the chain to their credit are now working to combine these into a single proposal which would make USTC the reserve currency of the network.
As the month progressed, the community reduced its on-chain tax to 0.2%. Notably, the 1.2% tax implementation led to a significant decline in on-chain volume. To reclaim this lost volume, the community opted to reduce the tax inspired by a proposal from a community member known only as Akujiro.
As per this new proposal, 10% of all LUNC burned goes to the community pool to fund development. Notably, some community members had believed that this seignorage would apply to only LUNC burnt by the tax and, as such, have voiced misgivings over the current application. Still, a proposal to this effect is yet to materialize.
With the new inflow to the community pool, core developer Edward Kim proposed a grant program to efficiently and transparently allocate the fund for chain development.
Furthermore, the Terra Classic community received two major positives in October. Firstly, renowned Cosmos developer Jacob Gadikian disclosed that the code to re-open Inter Blockchain Communication channels was ready. Secondly, Alex Forshaw disclosed that he had been made aware of $4 million in off-chain assets belonging to the Terra Classic chain, which promises to speed up the blockchain’s development significantly.
Notably, both disclosures have become the subject of intense debates in November. The community is yet to decide how it would manage the off-chain assets, even as the wording of a proposal to re-open IBC channels has raised concerns.
Despite all these, developers have disclosed that they are on track to roll out v23. It could see the network become Cosmos interoperable and able to run decentralized apps compatible with the new Terra blockchain in December.