• The Layer-1 Joint Task Force (L1JTF) is a developer team composed of Terra Luna Classic (LUNC) holders who have proposed a test environment designed to help repair the malfunctioning stablecoin USTC.
• The L1 Task Force proposes several ideas, including penalizing USTC holders for selling below $1 and creating a special staking vault with implied divergence fees on trading.
• Other ideas include burning $LUNC and an AI chain app, which would increase Terra Luna Classic’s utility.
Layer-1 Joint Task Force Proposes USTC Repeg Test Environment
The Layer-1 Joint Task Force (L1JTF), a developer team made of Terra Luna Classic (LUNC) holders, has decided to take control of the USTC repeg initiative. They proposed a test environment specifically geared towards repeging USTC, which would allow them to experiment with several ideas described in the Terra Classic network proposals without needing extra funds.
Proposed Ideas for Rebuilding Stablecoin
Their proposals include penalizing USTC holders for selling the asset below its assumed peg at $1 and creating a special staking vault with implied divergence fees on trading. Additionally, they plan to create a liquidity pool between USTC and LUNC when Terra Classic USD (USTC) is back at the $1 peg, as well as burning $LUNC and building an AI chain app to increase its utility.
Opposition from Community Members
However, some members are opposed to the divergence fees due to concerns that major exchanges wouldn’t accept it. Nevertheless, their proposal passed despite these objections.
Terra Classic Network Progress
The team is currently focused on testing the v2.1.0 upgrade on parity before its launch on June 14th as part of their efforts to rebuild the broken system caused by USTC’s malfunctioning stablecoin status.
The LUNC community has seen numerous attempts at reviving USTC since its crash in 2023; however no real progress has been made until now when the L1 Task Force pitched their own solution via Agora – creating a simulation environment specifically geared towards repairing it without needing additional funds from investors or developers alike. Despite facing opposition due to potential problems with acceptance from exchanges, they remain determined in their mission and are making progress through testing various upgrades on parity as they prepare for June 14th’s launch date.