Terra Luna Classic (LUNC) Experiences Explosive Growth Following Unanimous Community Vote on USTC Minting Halt
In a surprising turn of events, Terra Luna Classic (LUNC) witnessed a remarkable surge of over 45%, catapulting its value from $0.000064 to a significant milestone, nearly eliminating one leading zero. The spike in trading volume, soaring from an average of $30 million to an astonishing $333 million, has left the cryptocurrency community buzzing. The driving force behind this unprecedented growth appears to be a pivotal proposal centred around USTC minting, which garnered unanimous support from the LUNC community.
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As $LUNC proposal #11868 passed (to fulfill #11784), $USTC now is no longer mintable. Stable-to-stable swaps are disabled. #LUNC/#USTC swaps via terraswap are still available of course. pic.twitter.com/Q7hAsdGJ2H
— StrathCole (@ColeStrathclyde) November 11, 2023
Proposal Approval and Tobin Tax Increase
The LUNC community recently voted unanimously in favour of halting USTC “minting and reminting” by implementing a substantial increase in the Tobin tax, setting it at an unprecedented one hundred per cent. This proposal received overwhelming support, with an impressive 98.95% of votes in favour. The move is seen as a strategic response to a crucial proposal regarding USTC minting that had recently received approval.
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Market Module Mechanism and USTC Circulation
According to the Terra Classic Commonwealth portal, USTC comes into circulation exclusively via the market module. During market crashes, the mechanism was deactivated for LUNC to stablecoin pairs by increasing the spread to 100%, preventing swapping between LUNC and other stablecoins. The report emphasized that the Tobin tax, set to 100%, becomes the mechanism for stablecoin swapping, effectively disabling the functionality.
Layer One Task Force (LITF) Intervention
To enforce the proposal’s implementation, the Layer One Task Force (LITF) introduced a code change, introducing a new governance parameter. This parameter enables the setting of a Tobin tax for swaps to USTC, resulting in the halting of USTC minting. The report highlighted the absence of a practical exit route from stablecoins other than USTC, sparking discussions about simplifying the process by raising Tobin taxes for all stablecoins to 100%.
Implications for Terra Classic Ecosystem
If fully implemented, the proposal would render all market swapping and associated coin minting on Terra Classic non-operational. This move has far-reaching implications for the Terra Luna Classic ecosystem, impacting how stablecoins are utilized and exchanged within the platform.
The recent surge in Terra Luna Classic’s value and trading volume, coupled with the unanimous community vote on the USTC minting proposal, marks a significant chapter in the cryptocurrency’s journey. The decisions made by the community and subsequent code changes will undoubtedly shape the trajectory of Terra Luna Classic in the coming days. Investors and enthusiasts are advised to monitor developments as the project navigates these critical changes closely.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
