- A recently passed proposal may change the state of Terra Luna Classic.
- The new proposal’s impact could push Terra Luna towards becoming the new Dogecoin.
- Classy Crypto YouTube channel’s host, and other validators voted yes for Proposal 11710.
A recently passed proposal by the Terra Luna Classic validators may change the state of the project, according to the Classy Crypto YouTube channel’s host. The crypto influencer thinks the impact of the new development could push Terra Luna towards becoming the new Dogecoin.
The crypto influencer and a Terra Luna validator stated that he and other validators voted yes for Proposal 11710. According to him, the latest proposal marks the 17th time the Terra Luna Classic validator has voted on a proposal that deals with burning 800 million USTC.
According to the Classy Crypto host, Terra Luna validators are releasing multiple proposals. He believes they are motivated by the successes of the previous proposals passed on the cryptocurrency’s network.
The Crypto YouTube influencer observed one of the recent proposals that is not getting the same traction as Proposal 11710. According to him, Proposal 11716 has left every Terra Luna Classic influencer quaking and has shorted the crypto asset. He thinks their reason for shorting is because they are scared the USTC repeg may not happen if the proposal doesn’t go through.
The Terra Luna Classic Community approved the proposal to repeg the Terra Classic Stablecoin (USTC) to the dollar earlier this year. The proposal outlined its strategies and steps towards achieving the repeg. Some of the steps involved in the process include holding reserves in multiple assets and currencies and implementing a buyback and burn mechanism to regulate the supply and demand of USTC.
Other steps outlined in the proposal involve paying out interest in US dollars to incentivize holders to keep USTC when it is below the peg and charge interest when the price is above the peg. The project would also integrate multiple Oracle systems that provide exchange rate data to reduce the risk of manipulation by a single Oracle.
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