In an ambitious move to revive the underperforming LUNC token, the Terra Classic Layer-1 Task Force (L1TF) has joined forces with a newly formed quant team, with the primary goal of repegging the collapsed stablecoin USTC. The decision to collaborate stemmed from a productive discussion between L1 development team project manager LuncBurnArmy (LBA) and former Terra Rebels member Redline Drifter. This partnership is expected to be a crucial catalyst in the recovery of the LUNC token, as acknowledged by the Terra Classic community.
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Following the completion of the parity upgrade on June 14, the L1TF is now preparing to submit a proposal for its Q3 tasks. As part of this proposal, LBA announced on Twitter that they would be removing the “reserve architecture/design” and other USTC-related components, except for the market module, which they intend to thoroughly test in the testnet.
6. The L1 team will include the 'support of the quant team' in the Q3 proposal, as we believe that USTC is an important component of recovering the Luna Classic ecosystem.
— đ„LuncBurnArmyđ„ (@luncburnarmy) June 19, 2023
Terra Classic Layer-1 Task Force Joins Quant Team to Repeg USTC
The L1 development team has chosen to focus on the proposal previously submitted by Drifter, which suggests utilizing a divergent tax protocol and a buy-and-burn mechanism to achieve a USTC repeg. However, LBA acknowledged the possibility of central entities not agreeing to the divergence tax strategy. To address this concern, LBA urged the quant team to explore alternative funding methods for the reserve, as well as devise a resilient architecture and design for the reserve, in case centralized exchanges (CEXs) do not support the divergence tax.
LBA emphasized that the quant team would allocate 60-70% of their time to model the divergence tax while dedicating the remaining time to identify other mechanisms for funding the reserve that is independent of CEXs. This comprehensive approach aims to ensure a robust and sustainable solution for repegging USTC.
5. We had discussed the quant team could perhaps spend 60-70% of their time on the modelling of the divergence tax, but then spend the remainder of their time on the identification of other mechanisms to fund the reserve that are not dependent on CEX's.
— đ„LuncBurnArmyđ„ (@luncburnarmy) June 19, 2023
During the third quarter of 2023, the L1 development team plans to prioritize the testing of the market module, as it plays a crucial role in the USTC development process. This step will be instrumental in facilitating the work of the quant team and enhancing their modelling efforts.
The LUNC community Look Forward to the collaboration to revive LUNC’s price
The latest developments in the Terra Classic ecosystem have sparked speculation among community members, who anticipate a significant rise in the LUNC token’s price. It is believed that the collaboration between the L1TF and the quant team, coupled with the implementation of a repeg for USTC, could potentially boost the LUNC token’s value by as much as 40% from its current low position.
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As the Terra Classic Layer-1 Task Force and the quant team set their sights on repegging USTC, the Terra Classic community eagerly awaits the successful implementation of these strategies. This joint effort reflects the dedication and commitment of the development teams to revitalize the LUNC token and enhance the overall stability and growth of the Terra Classic ecosystem.
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