UST Token Soars After Revival Proposal
The Terra ecosystem community has just approved a proposal to revive the stablecoin USTC, leading to a significant price surge for the token.
Specifically, the proposal titled “USTC Re-Peg: Ziggy” appeared on the Terra forum on January 28. As of today, February 3, it seems that the majority of the community supports restoring UST to its $1 peg.
We voted YES on Proposal 11324 🗳️
— LUNC Development Fund Validator (@luncdevfund) February 2, 2023
👉🏻 ZIGGY Repeg UST ( Signal )
Although this does not guarantee a repegging it allows @wrapped_dday and others to continue working towards this #LUNC goal
A wonderful door opening for a larger conversation!
Read here https://t.co/3klP0RCjFP
To help USTC regain its peg quickly, the proposal outlines several strategies:
- Diversify Reserve Assets and Currencies: Expand the range of assets and currencies held in reserve.
- Implement Buybacks and Burns: Regulate supply and demand of USTC through buybacks and burns.
- Pay Interest in USD: Encourage users to hold USTC when it is below the peg by paying interest in USD and charge interest when it is above the peg.
- Integrate Multiple Oracle Systems: Reduce manipulation risk by incorporating various oracles for exchange rate data.
As Coin68 previously reported, the catastrophic collapse of the Terra empire in May 2022 wiped out $60 billion in assets from the market. At that time, CEO Do Kwon proposed a “hard fork” of the blockchain to revert to a state before the de-peg event, essentially “wiping the slate clean” and redistributing assets to users holding LUNA and UST. Since then, the old blockchain has been rebranded as Terra Classic, with the token Luna Classic (LUNC) and stablecoin USTC.
Additionally, according to sources from Terraform Labs, the development team behind LUNA and UST, CEO Do Kwon is rumored to be making a comeback to the crypto market with new projects on Terra 2.0, despite facing a manhunt by South Korean authorities.
The UST (USTC) stablecoin has surged dramatically, rising over 60% since the proposal, and is currently trading around $0.04. Meanwhile, Terra Classic (LUNC) is also seeing some positive momentum.
1H Chart of USTC/USDT on Binance at 06:55 PM, February 3, 2023
1H Chart of LUNC/USDT on Binance at 06:55 PM, February 3, 2023
The community remains optimistic that the proposal will soon drive the token back to its previous $1 value.
