Terra Luna Classic’s community is inclined to burn a colossal 800 million USTC tokens, a decision underscored by the inactivity surrounding the Ozone Protocol’s initially proposed development plan.
The original intent of the Ozone Protocol, the brainchild of Terra co-founder Do Kwon, was to be financed by funds sourced directly from the community pool. Even though Ozone V1 and Ozone V2 were met with high demand in underwriting capacity, a staggering 1 billion UST (now rebranded to USTC) still needed to be fully deployed as planned. This left many advocating for the return of these tokens to the community pool.
Let's take some #USTC out of circulation ? #LUNCcommunity #LUNC https://t.co/urfJgXeydA
— Vegas (@VegasMorph) July 25, 2023
The dueling proposals: To burn or return?
Proposal 11658, spearheaded by the ex-Terra Rebels developer group member Vegas, drew significant attention to the 800 million USTC tokens. This proposal focused on redirecting these tokens to the Terra Luna Classic community pool. However, this idea faced stiff competition. A counter-proposal, touted as Proposal 11660, backed by DNC, M Van S, Lunanauts, and the SolidVote Validator, pitched the concept of burning these 800 million LUNC tokens.
In defense of their counter-proposal, the backers stated;
“We neglected to use the Commonwealth platform to discuss for the recommended 7 days due to the simplicity of the proposal and the critical timing. This proposal is required as a counter to 11658 before a flurry of spend proposals arrive.”
This pressing need was echoed by top validators who favored torching the 800 million USTC in a wallet tied to the Ozone Protocol, hoping it would act as a catalyst to restore the USTC’s peg and spur growth in LUNC developments.
Impact on LUNC and USTC markets
The financial markets haven’t remained indifferent to these developments. The LUNC price slid slightly over 1% in the last 24 hours up to the time of writing, with its value hovering around $0.00007721, according to CoinMarketCap data. Expert projections hint at a potential bounce back for LUNC, forecasting a recovery past the $0.00009 support mark, driven by a forming triangle pattern.
LUNC/USD price chart, Source: CoinMarketCap
The USTC/USD pair experienced a 2% dip in price after the announcement, a downturn following a 50% rally. This rally had its roots in announcements related to the USTC’s pegging. Trading volumes saw a dip recently, with traders migrating back to LUNC.
Towards a transparent future
The USTC Quant team, in their recent update, shone a light on the developer team’s ongoing activities within the Terra Classic network. They reiterated their commitment to “transparency, value creation, and community involvement.” Bilbo Baggins, a key figure in the Terra Classic community, unveiled substantial sections of the Terra Classic Revival White Paper, addressing several pressing issues, most notably rejuvenating the LUNC chain’s liquidity flow via the Columbus-5 protocol.
The $USTC Team Weekly Update #5 is up on Commonwealth! https://t.co/fVKINklrq9
We've released an initial version of the Buy Back Protocol Report, which can be seen here: https://t.co/U10G2c9WMc
Further improvements are planned for the report.#LUNC #LUNCcommunity #LuncArmy
— Bilbo Baggins (@OhhBilboBaggins) August 7, 2023
As Terra Luna Classic moves ahead with its community-backed decision to burn the USTC tokens, it symbolizes a testament to the power of collective decision-making.
The community has spoken, clarifying that their allegiance lies in the potential long-term benefits rather than short-term gains. Only time will tell if this daring move will steer USTC and LUNC toward more prosperous horizons.
and then