In anĀ Ask Me Anything (AMA) sessionĀ hosted hours ago by WSB Trader Rocko, Terra Classic core developer Tobias Andersen AKA Zaradar, revealed that the Terra Classic developers are working on a new repeg proposal.
According to Zaradar, the new proposal combines hisĀ proposalĀ with theĀ one made by Alex Forshaw. Notably, Forshaw and another team member, Max, are working to make this a reality and put to bed the recent debates surrounding the matter.
Unsurprisingly, the new proposal will require no new Terra Luna Classic (LUNC) minting.
āAlex and Max, they will work on an integrated proposal,ā said Zaradar. āSo we can sort of put that whole debate to rest, and you know, have a shared vision on how to fix this that will avoid printing more LUNC that will avoid neglecting USTCās role as our reserve currency.ā
Additionally, the LUNC core developer asserts that TerraClassicUSD (USTC) will serve as the networkās reserve currency based on this plan. Furthermore, according to Zaradar, the developers will also likely create a commodity token whose sale will help to strengthen the Treasury or community pool further.
āSo in the joint proposal, USTC would be the reserve currency for everything,āĀ said the Terra Classic core developer.
It is worth noting that the Terra Classic community has been engaged inĀ debatesĀ for the better part of this month over the USTC repeg proposal that had a better chance of succeeding. Notably, theĀ initial proposalĀ from Forshaw evoked mixed feelings as it included a plan to mint more LUNC.
The reaction was unsurprising as bringing down the LUNC supply remains critical to the Terra Classic ecosystem recovery.
Notably, the first indication that developers could combine the competing proposals came when Edward Kim, another Terra Classic core developer,Ā suggestedĀ running both proposals in parallel on the testnet.
It bears mentioning that should USTC reclaim the dollar peg, it would exponentially increase the rate of LUNC burns, creating a clearer path for holders to recover lost value. Notably, the USTC de-peg in May led to the Terra ecosystem collapse and wiped off over $60 billion in investor funds.