Terra Classic core developer Tobias Andersen AKA Zaradar, revealed in an Ask Me Anything (AMA) session hosted hours ago by WSB Trader Rocko that the Terra Classic developers are working on a new repeg proposal.
According to Zaradar, the new proposal combines his and Alex Forshaw’s ideas. Notably, Forshaw and another team member, Max, are working hard to make this a reality and put the recent debates to rest.
Although, the new proposal will not necessitate minting new Terra Luna Classic (LUNC) coins.
“Alex and Max, they will work on an integrated proposal,” said Zaradar. “So we can sort of put that whole debate to rest, and you know, have a shared vision on how to fix this that will avoid printing more LUNC that will avoid neglecting USTC’s role as our reserve currency.”
Furthermore, the LUNC core developer claims that TerraClassicUSD (USTC) will serve as the network’s reserve currency under this plan. According to Zaradar, the developers will also likely create a commodity token, the sale of which will help to strengthen the Treasury or community pool even further.
“So in the joint proposal, USTC would be the reserve currency for everything,” said the Terra Classic core developer.
It is important to note that the Terra Classic community has been debating the USTC repeg proposal, which has a better chance of succeeding, for the better part of this month. In his initial proposal, Forshaw included a plan to mint more LUNCs. This stirred mixed reactions.
Due to the importance of reducing the LUNC supply for the revival of the Terra Classic ecosystem, the reaction was expected.
Another Terra Classic core developer, Edward Kim, suggested running both proposals in parallel on the testnet as the first indication that developers could combine the competing proposals.
It is worth noting that if USTC reclaims the dollar peg, the rate of LUNC burns will increase massively, providing holders with a clearer path to recover lost value. Particularly, the USTC de-peg in May caused the Terra ecosystem to collapse, wiping out more than $60 billion in investor funds.