From Past to Future: A Smart Legal Alternative to Traditional Stablecoins
Proposal Overview: Launching Dynamic Algorithmic Assets (Stable-like Assets)
Proposed Assets:
• An asset pegged to the Russian Ruble (RUB)
• An asset pegged to the Euro (EUR)
• An asset pegged to the Chinese Yuan (CNY)
Note: These assets will not be labeled as “Stablecoins” to avoid regulatory restrictions. Instead, they will be introduced as:
• Adaptive Value Assets
• Smart Peg Units
• Experimentally Pegged Assets
Suggested Use:
• These assets will be integrated into DeFi applications within the Terra Classic ecosystem.
• They will provide price references to national currencies, with controlled and algorithmically managed volatility.
Global Market Integration & Strategic Reach
By introducing algorithmic assets pegged to the Russian Ruble (RUB), Euro (EUR), and Chinese Yuan (CNY), Terra Classic can tap into three major global economies.
These assets can serve as gateways to adoption in Russia, Europe, and China, enabling users in those regions to transact, save, or build on Terra Classic using familiar currency references.
This opens the door to new markets, new communities, and real-world utility, strengthening LUNC’s global relevance and use case potential.
Legal Classification & Regulatory Flexibility (Smart Legal Framing)
Due to increasing restrictions on stablecoins by regulatory bodies (e.g., EU, USA), this new framework intentionally avoids classifying the assets as traditional stablecoins.
How This Model Succeeds:
• The assets are explicitly marketed as non-regulatory stablecoins.
• They are introduced as Controlled Volatility Algorithmic Assets.
• The collapse of USTC is used as historical evidence that the new system is more flexible and doesn't fall under existing definitions.
• They are not classified as fiat-backed financial instruments, keeping them within decentralized boundaries.
Suggested Terminology:
• Adaptive Value Assets
• Smart Peg Units
• Experimentally Pegged Assets
USTC Reintegration (Optional)
A portion of transaction fees from these new assets can be allocated to gradually burn USTC:
• Symbolically restores some of its value.
• USTC would not be reintroduced as a stablecoin, but as a community-backed legacy token.
• This strengthens system integration and encourages USTC holders to support the new model.
Circuit Breaker Mechanism (Network Protection Tool)
Functionality:
If the value of any of the three assets drops by more than 3% without a valid reason:
• Transactions are temporarily paused
• A technical team is formed to investigate
• Operations resume only after a community vote
Benefits:
• Protects the network from attacks and extreme volatility
• Shields users from flash crashes
• Maintains systemic stability in a decentralized manner
