The Terra Classic chain has had a tumultuous year, making headlines for various reasons, from defying the bearish crypto market trend early in the year and setting new highs on the promise of decentralised crypto money at scale to spectacularly collapsing in May.
The Terra Classic network has been evolving quickly despite being community-owned and lacking VC funding.
Now, though, it is making news due to its emerging community, which has taken control and is paving the way to restoration and lost glory.
Remarkably, the community has wasted no time attempting to address the chain’s main problems after seizing control.
These include lowering the excess supply of Terra Luna Classic (LUNC), re-pegging TerraClassicUSD (USTC), repairing the chain, and generating and attracting utility in no particular order.
Terra Reintroduced Staking and Reduced the LUNC Supply
It’s important to remember that Terra reintroduced staking from the end of August until the beginning of September.
Also, they dealt with the issue of significantly decreasing the LUNC supply with a 1.2% on-chain tax while pleading with crypto exchanges to implement the tax on off-chain transactions.
The biggest cryptocurrency exchange in the world, Binance, launched a campaign to burn all trading fees made from LUNC trading activity as thanks for its efforts.
Mainly, October saw a flurry of new developments and contentious discussions, which is to be expected from a chain that is run by the community.
More Developments in October
How to repeg the defunct stablecoin and compensate holders was the first problem that community members tried to solve in October.
To this end, the community received two specific proposals that sparked contentious Twitter discussions.
Developers who volunteered to rebuild the chain are now attempting to combine these into a single proposal that would designate USTC as the network’s reserve currency.
As the month went on, the community lowered its on-chain tax to 0.2%. Notably, the 1.2% tax implementation resulted in a sizable decrease in on-chain volume.
The community decided to lower the tax in response to a suggestion made by a member known only as Akujiro to recover this lost volume.
According to this new proposal, the community pool will receive 10% of all LUNC burned to support development.
However, some community members had expressed concerns about the current application because they had thought that this seignorage would only apply to LUNC burned by the tax. A proposal to this effect has yet to be made, though.
Edward Kim, a core developer, proposed a grant program to effectively and transparently distribute the fund for chain development in light of the recent inflow to the community pool.
Terra Classic Community Received Two Major Positives in October
In October, the Terra Classic community also experienced two significant victories.
First, Jacob Gadikian, a well-known Cosmos developer, announced that the code to reopen Inter Blockchain Communication channels was complete.
Second, Alex Forshaw revealed that he had been made aware of $4 million in off-chain Terra Classic chain assets, which could potentially accelerate the blockchain’s development significantly.
Notably, both disclosures sparked heated discussions in November. Even though concerns have been raised about the wording of a proposal to reopen IBC channels, the community still needs to decide how it will manage the off-chain assets.
Despite these obstacles, developers have stated that they are scheduled to release v23. In December, the network might become Cosmos-interoperable and capable of supporting the new Terra blockchain for decentralised applications.