- Terra Luna Classic community approves Proposal 11730, aimed at funding the USTC Quant team to stabilize USTC, the community’s stablecoin.
- This move comes after both LUNC and USTC experienced significant price drops amid broader market uncertainties.
Terra Luna Classic Takes a Stabilizing Step Forward
In a significant governance decision, the Terra Luna Classic community has voted in favor of Proposal 11730, known as the “USTC / Stable Algo Quant Team” proposal. After initially failing to acquire the minimum votes—largely due to issues with the Terra Station wallet—the proposal was resubmitted and has now received a substantial validator turnout. This strategic vote is seen as instrumental for the USTC Quant team, who are focused on stabilizing USTC, the platform’s algorithmic stablecoin.
Interestingly, the proposal secured 50% “Yes” votes, clearing the “pass threshold,” along with 8% “No” and 7% “No with veto” votes. Allnodes, the validator with the most significant voting power, abstained, accounting for 35% of the votes. Overall, 50 validators participated, with key names like DFLunc, Stakely, 1maxfee, TerraCVita, LUNC DAO, and StakeBin lending their support. This marks a decided turn from an earlier rejection by the community, attributed in part to certain validators’ actions.
The USTC Repeg Team’s Role and Market Impact
The USTC repeg team is set to focus on identifying and eliminating “zombie USTC”—USTC tokens that are not fulfilling their role as a stablecoin—without requiring additional funding. The term “zombie USTC” refers to USTC tokens that have deviated from their peg to the US dollar, thereby compromising their utility as a stable medium of exchange. This is crucial for the overall health of the Terra Luna Classic ecosystem, as stablecoins like USTC are fundamental for decentralized finance (DeFi) applications.
This development comes at a precarious time for the Terra Luna Classic tokens, LUNC and USTC, which have faced significant volatility recently. LUNC’s current price stands at $0.000061, marking a 3% decline over the last 24 hours and a 22% decrease over the past month. Meanwhile, USTC has witnessed a 5% drop within the past day, with its trading volume surging by 150%.
This governance action, although reflective of internal community mechanisms, cannot be disassociated from the broader crypto ecosystem, which saw a collective slump following the U.S. SEC’s delay in making a decision on seven Bitcoin ETFs. Whether this newly approved proposal will serve as a catalyst for positive price action in LUNC and USTC remains to be seen.