Date: Sat, Sept 14, 2024, 05:24 PM GMT
In today’s cryptocurrency market, Terra tokens, including Luna Classic (LUNC), Luna (LUNA), and USTC, saw impressive price jumps following a new proposal aimed at re-establishing the peg of USTC to the $1.
A former member of the Terra Rebels developer group, Vegas Morph, has put forward a detailed plan to repeg USTC. This proposal comes after previous attempts failed to deliver positive results for the Terra Luna Classic community.
In a recent Medium post, Vegas Morph outlined a series of changes needed to reactivate the market module safely. These steps, he claims, will help USTC regain its dollar peg. The key points of the proposal include:
- Oracle Integration: A new oracle module is essential for providing real-time price feeds for USTC.
- Burn and Allocation Strategy: The burn rate should be set at 20% of the fee, with 20% allocated to the Oracle Pool and 60% directed towards a pool designed to maintain the peg.
- Liquidity Pool Limits: Introducing virtual liquidity pools with size limits and conditional activation steps.
- Supply Cap: Imposing a hard cap on the supply of both LUNC and USTC to prevent unwanted token minting.
- Kill Switch: Adding a kill switch to disable the module if necessary.
Reacting to the news, the price of Terra tokens experienced a noticeable boost. LUNC surged by 4.86%, LUNA rose by 8.01%, and USTC saw an 8.33% increase. The market’s response signals growing optimism that the new repeg plan could bring positive change to the Terra ecosystem.
As more details emerge, all eyes are on how the community and developers will collaborate to move forward with this proposal.