Terra Classic Market Swap Initiative Kindles Community Clash

Taking a magnifying glass to the tensions in Terra Classic’s market swap initiative: Why did the author controversially change his mind?

Two man seems to be upset with eachother surrounded by fire.
Created by Gabor Kovacs from DailyCoin
  • Proposal #11767 aims to restore LUNC/USTC market swap functionality.
  • The author of the idea claims that is the easiest path to burn more $LUNC.
  • Leaked screenshots show USTC Quant Team intimidating author Igor Veras.

Terra Luna Classic’s chain revival quest escalates with fiery debates as developers seek ways to implement the highly-anticipated LUNC/USTC market swap function. Initially, Terra volunteer developer Igor Veras penned proposal #11767 to test a LUNC mint limitation on the main market module.

By this proposal, Veras is expected to cooperate with the Layer-1 Joint Task Force Team (L1JTF) and the USTC Quant Team on setting up a testing environment for the idea. However, several prominent Terra Classic members assume that the volunteer Veras was bullied out of proceeding with his idea.

JESUSisLORD, one of the largest validators on the network, took to X to describe the string of events that led to Veras blandly stating: “For me it’s done. I’m out.” According to JESUSisLORD, the sudden change in Vera’s behavior came after the talks with the USTC Quant team, which denounced the importance of the proposal.

How Powerful Is LUNC/USTC Market Swap Initiative?

As previously reported by DailyCoin, proposal #11767 received some support from the Terra Classic community before L1JTF leading developer Vinh Nguyen pointed out that the market swap feature could harm staking rewards and cause turmoil for delegators and validators on the chain.

Restoring the market swap functionality on the struggling blockchain would significantly reduce the circulating supply of Terra Luna Classic (LUNC) and the malfunctioning stablecoin Terra Classic USD (USTC). This would allow the creation of new trading pairs on Astroport or Terraswap.

Finally, the market swap functionality is slated to increase $LUNC burns, as the proposal’s author declared that “there is no better way to burn USTC and LUNC tokens.”

While the reasons for attacking the particular proposal are still unclear, several Terra Classic members argue there’s no place for intimidation in this highly active and magniloquent crypto community. For now, it’s unknown if Veras or the Layer-1 Joint Task Force Team will proceed with testing the mint limitation safety feature for the market maker algorithm.

On the Flipside

  • The USTC Quant Team disclosed that several centralized exchanges are reviewing the final USTC re-peg proposal.

Why This Matters

The market swap function was disabled after the 2022 financial fiasco, when $UST stablecoin crashed, losing its original $1 peg. The proposal could be pivotal in restoration efforts for Terra.

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Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.