As Terra Founder Do Kwon Appears in Court, Terra Classic (LUNC) Receives Major Update Today – Here Are the Details

The Terra Classic (LUNC) community has announced the new Terra Classic Market Module 2.0 (MM 2.0). This version stands out with its mint-free version. The new module brings significant changes to the TerraClassic ecosystem without minting money.

In the new version, minting can be done with multi-layered restrictions. These restrictions include SDR base, PRP limits, and daily minting limits based on burn history. These changes aim to reduce the risk of inflation. The main features of the MM version 2.0 are:

• Instantly Available: The Marketplace Module is instantly available.
• Swap Fees (0.35%): Half will be burned, half will be sent to the Oracle Pool.
• New Minting Limitations: Up to 80% of the LUNC burned in the past 30 days can be minted (maximum 100k SDR).

This is not a “repeg” proposal. In other words, there is no attempt to peg USTC back to $1. USTC will no longer be treated as a stable asset. There will be no new LUNC minting in swaps. Instead, a pre-funded pool will be used. This approach replaces the classic “mint and burn” mechanism.

Although many security measures have been taken, if the impact that the community expects from this mechanism is too high, disappointment may occur.

In the new clearing system, the system will work as follows:

• USTC – LUNC exchange: User gives USTC and receives LUNC from the pool.
• LUNC – USTC exchange: User gives LUNC and receives USTC from the pool.

Half of the 0.35% fee charged on each swap transaction is burned, while the other half is transferred to the Oracle Pool. Swaps that are concentrated only in the USTC-LUNC direction may lead to the pool being depleted and falling below expected LUNC burn rates. On the other hand, this may accelerate USTC burns.

*This is not investment advice.

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