In a bid to revive LUNC’s value and re-peg USTC, Terra Classic community member Rex has introduced a series of groundbreaking proposals. Since the Terra Collapse of last May, the community has tirelessly attempted to re-peg USTC and propel LUNC’s price to $1. However, these efforts have fallen short, prompting Rex to suggest a novel approach.
Rex’s strategy revolves around stimulating network growth, a crucial factor in LUNC’s price resurgence. He emphasizes that Terra Classic has been drawing in developers recently. To further entice dApp builders, Rex advocates for making the new Terra Classic network code openly accessible, akin to Terra’s early days. This move could potentially attract more developers to the network.
Moreover, Rex proposes the idea of allowing builders to whitelist their dApp wallets to circumvent the prevailing burn tax, but he emphasizes the importance of community support for this initiative to thrive.
Notably, Rex challenges the conventional wisdom of token burning as a solution. While previous proposals leaned heavily on burning USTC and LUNC tokens, Rex questions the efficacy of this approach. With 9.78 billion USTC coins in circulation, Rex suggests that burning billions is necessary to elevate USTC’s price to $1, a similar challenge facing LUNC.
However, Rex’s most intriguing suggestion diverges from the norm: instead of pursuing a direct re-peg of USTC, he advocates for a reverse split mechanism. This mechanism would revalue USTC without inflating its market valuation. In practical terms, if you held USTC worth $100 at the current price, you would receive $100 worth of USTC during the re-pegging, preserving the market cap at $97.8 million instead of skyrocketing to $9.78 billion. This unconventional approach foregoes the potential 80x growth of USTC but offers stability.
After the successful re-peg of USTC, Rex believes that burning USTC could be instrumental in boosting LUNC’s price, resulting in an enhanced Terra Classic oracle pool value and more staking rewards. These rewards, in turn, would attract more network investors. Rex emphasizes that the bathtub curve model, which gradually reduces rewards over time, would safeguard against large investors draining the oracle.
Despite some drawbacks, such as forgoing rapid price growth, the reverse split re-pegging strategy holds the promise of reviving LUNC’s value. As of now, LUNC trades at $0.00005761 per coin. Additionally, the re-pegging of USTC is expected to magnetize a greater number of developers to the Terra Classic network, further bolstering its future prospects.
In conclusion, Rex’s innovative proposals may hold the key to rejuvenating LUNC and redefining the trajectory of the Terra Classic network. These ideas represent a departure from the norm and demonstrate the community’s unwavering commitment to realizing the vision of a $1 LUNC.