Terra Luna Classic's Bold Move to Burn 800 Million Tokens and the Quest for $1 LUNC and USTC

Bombolo | News and Media

The Terra Luna Classic community finds itself embroiled in a heated debate as one of its prominent members, Vegas, proposes the return of 800 million USTC tokens from a wallet linked to the Ozone Protocol. On the other hand, Alex Forshaw, another prominent member, believes these tokens should be sent to a burn address rather than returned to the community pool. This article aims to delve into the details of the governance proposal, the arguments put forth by both sides, and the potential implications for the Terra Luna Classic community.

Also Read: Token Recovery and the Journey to $1: Terra Luna Classic L1TF's Ambitious Plan Unveiled

The Governance Proposal

Ex-Terra Rebels developer group member Vegas has submitted a governance proposal to the Commonwealth forum for discussion. The proposal outlines the return of 800 million USTC on-chain funds to the Terra Luna Classic community pool. The primary reason behind this proposal is that the Ozone Protocol project is not actively following the proposed development plan. Vegas asserts that to rectify this situation, the community fund must support and underwrite Ozone indefinitely unless a counter-proposal is passed to remove the underwriting funds.

Ozone Protocol's Origins and Use of Funds

According to the proposal, the Ozone Protocol was initially conceptualized by Terra co-founder Do Kwon and funded using resources from the community pool. Both Ozone V1 and Ozone V2 garnered high demand for their underwriting capacity. However, the Risk Harbor team has not fully utilized 1 billion UST (now USTC) as originally intended. Thus, the proposal suggests that the funds be returned to the Terra Luna Classic community pool for more effective allocation.

Alex Forshaw's Counterargument

Alex Forshaw, a former Terra Rebels member and co-author of the Terra Classic Revival Roadmap, opposes the idea of returning the USTC tokens to the community pool. He believes that validators and stakers will likely take advantage of this situation and promptly sell the tokens, negatively impacting the USTC team's work. Instead, Forshaw proposes that it is more prudent to burn the idle USTC tokens. This, he argues, will not only strengthen the repeg narrative but also prevent potential negative repercussions on the token's value. Alternatively, he suggests a partial burn with a portion of the tokens going to the community pool.

Also Read: Ascending to New Heights: How Terra's Phoenix Upgrade Transforms LUNA Token

The Quest for a $1 Narrative

The Terra Luna Classic community has been steadfast in maintaining the $1 narrative for its native currency. To achieve this, the USTC repeg and LUNC developments are gaining momentum, with developers revealing plans to introduce significant changes to the chain.

Current Price Trends

At present, LUNC is trading at $0.000081, experiencing a slight 2% decline in the past 24 hours. The 24-hour low and high were observed at $0.0000807 and $0.0000834, respectively.

Conversely, USTC price is currently at $0.01613, exhibiting an increase of over 1% in the past 24 hours and an impressive 30% in the past month. The trading volume has also surged by 50% in the last 24 hours.

The Terra Luna Classic community faces an important decision regarding the fate of 800 million USTC tokens on the Ozone Protocol chain. Vegas advocates for returning the tokens to the community pool, while Alex Forshaw emphasizes burning them instead. Both sides present compelling arguments, and the community's decision will significantly impact the path ahead for Terra Luna Classic. As the debate continues, it remains essential for all stakeholders to carefully consider the implications of their choices on the community's future.

Also Read: Empowering the Future: Terra Classic's Community-Owned Wallet Proposal Passes, Sparking LUNC and USTC Surge

FAQs

1. What is the Ozone Protocol?
   The Ozone Protocol is a project proposed by Terra co-founder Do Kwon and funded using resources from the Terra Luna Classic community pool.
2. Why does Vegas propose returning the USTC tokens to the community pool?
   Vegas believes that the Ozone Protocol is not following the proposed development plan and suggests underwriting it indefinitely with community funds.
3. What is Alex Forshaw's counterargument?
   Alex Forshaw argues that it's better to burn idle USTC tokens rather than sending them to the community pool to prevent potential negative impacts on the token's value.
4. How is the Terra Luna Classic community working towards the $1 narrative?
   The community is actively pursuing the USTC repeg and LUNC developments to maintain the $1 narrative.
5. What are the current price trends for LUNC and USTC?
   As of now, LUNC is trading at $0.000081, while USTC is at $0.01613, with both showing fluctuations in the past 24 hours.