• Terra Classic Advocates Propose Plan to Re-Establish USTC’s Peg With US Dollar, Token’s Value Surges by Over 9%.
• Supporters of the Terra Classic blockchain community are deliberating on a plan to revive the ecosystem by re-establishing the once-stable token’s peg with the U.S. dollar.
• A “Divergence Protocol” mechanism proposed to impose an algorithmic/dynamic fee proportional to deviation between $1 peg and market value.
Terra Classic Advocates Propose Plan to Re-Establish USTC’s Peg With US Dollar
Almost 12 months back, terrausd (UST), an algorithmic stablecoin, suffered a detachment from the U.S. dollar, causing the Terra ecosystem to crumble shortly thereafter. At present, supporters of the Terra Classic blockchain community are deliberating on a plan to revive the ecosystem by re-establishing the once-stable token’s peg with the U.S. dollar. In response to this proposed development, the value of UST, renamed USTC, has escalated by more than 9% in 24 hours.
Terra Classic Community Plans to Take Action
The Terra Classic blockchain community aims to revive its algorithmic stablecoin’s ecosystem by restoring USTC’s value parity with the U.S. dollar. A member of this community who goes by „Redlinedrifter“ submitted a proposal affirming that Do Kwon’s decentralized money creation was positive but that “serious issues need to be addressed” for it achieve its goals . Redlinedrifter presented an idea called “Divergence Protocol“ which works by applying an algorithmic/dynamic fee equivalent to difference between peg and market price of token . The protocol is intended as a fresh strategy for tackling prior challenges that limited USTC’s ability maintain its peg with USD .
Previous Attempts at Reviving Stablecoin Ecosystem
This isn’t first time members of Terra community have proposed revamping Do Kwon’s stablecoin idea; in October 2022 , new “soft-pegged stablecoin“ concept built on Terra Phoenix network was introduced white paper . Despite these attempts however , thus far none have been successful in restoring token’s value parity with USD .
Value Surge After Proposed Development
After news of USTC revitalization plan broke out , asset has increased in value over 9% against USD . After reaching low $0 . 0195 per unit Friday ,USDT rose high $0 . 0218 per coin 1:15 p . m Eastern Time today ..