The Terra Luna Classic Community's Move Towards Reopening LUNC and USTC Market Swap

Bombolo | News and Media

In the wake of the 2022 Terra-LUNA crisis, the Terra Luna Classic community is currently deliberating over the prospect of reinstating the LUNC and USTC market swap function, a feature that had been temporarily disabled due to the crisis. This decision comes with careful consideration, particularly after a proposal from the L1 core developer team to refrain from implementing a limiter, as suggested by the USTC repeg team. This suggestion was rooted in concerns regarding its impact on the rewards, delegates, validators, and the community pool. Interestingly, a potential resolution has been presented by a proactive community member, which involves implementing the limiter exclusively within the market swap.

Also Read: Bearing Witness to Terra Classic: The Price Forecast as 5 Billion LUNC Tokens Are Unstaked

Terra Luna Classic's Market Swap Proposal

Igor Veras, an active member of the Terra Luna Classic community, has emerged with an innovative proposition to reopen the LUNC and USTC market swap. The primary objective behind this move is to effectively curtail the supplies of both LUNC and USTC, aligning with the community's vision of achieving a USTC repeg to $1 and revitalizing Terra Luna Classic (LUNC) back to $1.

The Developer's Perspective

Previously, L1TF developer Vinh Nguyen had indicated that the limiter function would no longer be a focal point for the team, as its implementation could trigger far-reaching consequences for rewards, delegates, validators, and the community pool. Nevertheless, Veras has put forth a seemingly uncomplicated solution to this conundrum.

In his words, "I believe it is simple to solve, just use the limiter only in the market swap and release the mint without a limiter for the validators, delegate, and community pool."

Veras has taken proactive steps by developing the required code and conducting thorough testing within the controlled environment provided by the L1TF developer team. The anticipated outcome of enabling the market swap through this innovative approach is a substantial increase in the rate of LUNC burns. Moreover, this measure is expected to bolster utility by facilitating the creation of pairs within platforms like Terraswap or Astroport.

Also Read : The Terra Classic Coin: Unveiling Trends and Patterns Impacting LUNC Price

Decline in LUNC Prices Despite Efforts

In recent times, the burn rate of LUNC has experienced a decline, even with the implementation of Binance's LUNC burn mechanism. Despite the diligent updates and parity efforts within Terra Luna Classic, the desired upward momentum in prices has remained elusive, ultimately causing the prices to plummet beneath multiple support thresholds.

As of now, the trading price of LUNC stands at $0.000061, representing a decline of almost 5% within a single week. The 24-hour trading range for LUNC spans from $0.0000611 to $0.0000636.

Simultaneously, the trading price of USTC has also experienced a downturn, dropping below support levels in the past 24 hours. However, there has been a notable 30% surge in trading volume during the same period.

In conclusion, the Terra Luna Classic community is actively engaged in discussions regarding the revival of the LUNC and USTC market swap function, aiming to achieve significant supply reduction and revive the value of these tokens. The proposed approach of utilizing the limiter exclusively within the market swap, as suggested by community member Igor Veras, presents a potential solution that may balance the concerns surrounding its impact on various aspects of the ecosystem. As the community moves forward with these deliberations, the crypto market watches closely to ascertain the potential outcomes.

Also Read: Terra Luna Classic Price Predictions for August, September, and October 2023

FAQs

Q1: What is the significance of reopening the LUNC and USTC market swap function?

Reopening the market swap holds the potential to significantly reduce the supplies of LUNC and USTC, aligning with the community's goals of repegging USTC to $1 and revitalizing LUNC to $1.

Q2: Why did the L1 core developer team decide against implementing a limiter as suggested by the USTC repeg team?

The L1 core developer team weighed the potential impact of the limiter on rewards, delegates, validators, and the community pool, leading them to opt for an alternative solution.

Q3: How has community member Igor Veras proposed to address the limiter issue?

Igor Veras suggests implementing the limiter solely within the market swap, while releasing the mint without a limiter for validators, delegates, and the community pool.

Q4: What benefits are anticipated from enabling the market swap through Veras' proposed approach?

Enabling the market swap using Veras' method is expected to increase the rate of LUNC burns and enhance utility by enabling new pairs in platforms like Terraswap or Astroport.

Q5: Despite efforts, why have LUNC prices been on the decline?

Despite various efforts and updates, LUNC prices have faced downward pressure due to multiple factors, leading to a decline in value.