The Terra Classic (LUNC) community is all set to bring TerraClassicUSD (USTC) to $1 following the passing of a crucial re-peg proposal.
The Terra Classic (LUNC) community has passed a significant proposal to support TerraClassicUSD (USTC) on its journey to $1. The proposal, submitted by the L1 Team, seeks to create a test environment to evaluate conditions necessary for a successful USTC re-peg event. The L1 team also plans to release a USTC re-peg roadmap in Q3.
Proposal 11548 was submitted a week ago by LuncBurnArmy (LBA), the L1 Team’s Project Manager, shortly after the release of the Agora text. The provisions of the proposal border on developing a simulated environment that the L1 Team and others can use to test how USTC can be re-pegged to the dollar.
Voting for the proposal ended today, demonstrating overwhelming support for the idea. Notably, a total of 49 validators voted on the proposal, with an outstanding 40 picking “Yes,” while the remaining nine abstained. No validator voted “No.” Allnodes and Orion are among the biggest validators that supported the idea.
In the wake of the Terra ecosystem collapse and the USTC de-peg, the community has championed the revitalization plan, which also encompasses the re-peg of USTC to the dollar. Consequently, the community has approved several ideas for re-pegging USTC, but none have been successfully implemented.
What This Means for USTC and Terra Classic
Passing the latest L1 Team proposal means that the team will use a small portion of the Q2 budget to develop the USTC test environment. The environment can be used by the L1 Team and other interested parties to evaluate USTC re-peg events, giving these events the necessary chances of trial.
Notably, LBA disclosed that the team would begin developing the test environment after they complete the Terra Classic mainnet upgrade to v2.1.0, which will help bring the LUNC blockchain to parity with the Luna 2.0 and Cosmos networks. The v2.1.0 upgrade is slated for June 14, and the team has already set up a proposal for the upgrade.
One of the USTC re-peg ideas the team intends to test in the environment is the tax divergence protocol introduced by LUNC community member Redline Drifter. Regarding this idea, Redline Drifter noted that he is working with the team and the Terra Grant Foundation to get concerns from exchanges and address them.
Meanwhile, according to LBA, the L1 Team plans to focus primarily on USTC re-peg work for the year’s third quarter, which will depend on community consensus. Per a recent Commonwealth text, the team aims to form a USTC working team and release a definite USTC re-peg roadmap in Q3.