Is Terra Luna Classic Really Pushing USTC Back To $1?

A brand new Terra Luna Classic buy back & burn strategy estimates gradually increasing LUNC burning records in the next 10 years. According to Leonardo, a popular Terra Classic community developer, the mechanism takes into consideration USTC’s universal repeg, assuming that the restored $1 peg would take Terra Classic USD (USTC) to at least a $1 billion market cap.

This aligns with Leonardo’s Ceramics Repeg, originally slated for Q1 of 2025, but pushed back due to lack of support on the Layer-1 chain. Ceramics Repeg is building a dual mechanism with USTC & USTR – the trick is to push the price back to $1 with a pool of yield-bearing assets.

USTC Back To Original $1 Peg? Whitepaper Says It All

Now, this USTC re-peg to $1 is slated for the last quarter of 2025. Ceramic’s official GitHub confirmed working on the project, but the exact completion date isn’t known to the public yet. However, the USTC re-peg will heavily rely on the conversion to USTR, while the developer emphasized that “this direction was not made through choice”.

Moreover, Ceramic devs released the full version of their signature USTC re-peg plan on X. The community developer team claims to be of 50% liberal & 50% scientific background, focusing on social science in their whitepaper.

In one of the latest updates, the developers explained that Terra Luna Classic’s chain should be coordinated with the ecosystem’s internal projects, such as Juris & Selenium, to set correct post-swap USTC interest rates. Ultimately, the re-pegged stablecoin would be renamed back to UST & employed as a standard unit of account across the Cosmos ecosystem.

On The Flipside

• Due to the division among LUNC community members, this USTC re-peg project could drag on to the next year.
• The embattled L1 chain’s adoption rates have shrunk considerably since the 2022 TerraForm Labs downfall.

Why This Matters

Collective community efforts to restore key parts of the battle-scarred Terra Classic chain have led to some results, like the LUNC portal revamp. However, for that to reflect on the altcoin’s price, demand should be consistent with the trading volumes.

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People Also Ask:

What’s the USTC $1 repeg hype? Terra Luna Classic is gunning to restore its stablecoin, TerraClassicUSD (USTC), to its $1 peg after the epic 2022 crash left it trading at just two cents on the dollar. The community’s all-in with burns and upgrades, but it’s a long shot given the past meltdown.

What’s the plan? They’re burning big stacks of coins (hundreds of millions of USTC and billions of LUNC in 2024) and rolling out upgrades like v3.3.0 to boost the chain’s utility. A $1M bounty’s also up for grabs to lure devs to fix the peg, but trust and execution are make-or-break.

Why’s it a tough road? The 2022 collapse, triggered by a flawed algorithm and mass sell-offs, obliterated USTC’s peg & LUNC’s value, leaving a bloated token supply and shaken confidence. Regulatory heat and weak market faith make a comeback tricky.

Could USTC & LUNC prices pop? Burns have sparked some short-term spikes, with USTC jumping 40% in a month recently, but analysts are skeptical about hitting $1 without killer use cases and massive demand. It’s a speculative play for now.

Where’s the full scoop? DailyCoin’s dropping constant, worthwhile updates on LUNC and USTC’s wild ride—check us out for the latest on Terra Classic’s community-driven comeback quest.