The Terra Classic (LUNC) community has successfully approved a notable proposal aimed at supporting TerraClassicUSD (USTC) in its quest to reach a value of $1. The proposal, put forth by the L1 Team, aims to establish a testing environment to assess the conditions required for a successful USTC re-peg event.
Furthermore, the L1 Team intends to release a roadmap outlining the process of USTC re-peg in the third quarter.
A week ago, LuncBurnArmy (LBA), the Project Manager of the L1 Team, submitted Proposal 11548 following the release of the Agora text. The proposal primarily focuses on the creation of a simulated environment that the L1 Team and other stakeholders can utilize to conduct tests on the process of re-pegging USTC to the dollar.
The voting process for the proposal concluded today, revealing a strong and widespread endorsement for the idea. A total of 49 validators participated in the vote, with an impressive 40 validators selecting “Yes” in favor of the proposal. The remaining nine validators chose to abstain from voting, and no validator voted “No” against the proposal. Noteworthy validators such as Allnodes and Orion were among the significant supporters of the idea.
Following the collapse of the Terra ecosystem and the de-pegging of USTC, the community has taken the lead in advocating for a revitalization plan that includes the re-pegging of USTC to the dollar. As a result, the community has approved multiple proposals and concepts for the re-pegging process. However, it is important to note that none of these ideas have been effectively executed or implemented thus far.
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What’s in Store For Terra Classic and USTC?
The approval of the latest proposal by the L1 Team signifies that a portion of the Q2 budget will be allocated towards the development of a USTC test environment. This environment will serve as a platform for the L1 Team and other interested parties to assess and trial USTC re-peg events. By creating this test environment, the team aims to provide the necessary opportunity for evaluating and refining the re-pegging process of USTC.
LBA revealed that the development of the test environment would commence after the completion of the Terra Classic mainnet upgrade to v2.1.0. This upgrade aims to align the LUNC blockchain with the Luna 2.0 and Cosmos networks. The scheduled date for the v2.1.0 upgrade is June 14, and the team has already submitted a proposal for the upgrade to be considered.
One of the USTC re-peg concepts that the team intends to test within the test environment is the tax divergence protocol proposed by Redline Drifter, a member of the LUNC community. Redline Drifter mentioned that he is collaborating with the team and the Terra Grant Foundation to address concerns raised by exchanges regarding this idea.
Additionally, LBA stated that the L1 Team’s primary focus in the third quarter of the year will be on USTC re-peg efforts, subject to community consensus. As per a recent Commonwealth text, the team plans to establish a USTC working team and release a comprehensive USTC re-peg roadmap during Q3.