🧩 What's new?
While Do Kwon appears in court, the Terra Classic (LUNC) ecosystem quietly released a major update — Market Module 2.0 (MM 2.0) — marking a key shift in how LUNC and USTC interact.
This update changes the way exchanges between USTC and LUNC occur, completely removing the old issuance and destruction model.
⚙️ Key features of MM 2.0:
✅ No new release due to exchanges
→ Exchanges now use pre-funded liquidity instead of freshly minted LUNC.
✅ Exchange fee: 0.35%
→ 50% of the fee is destroyed, 50% goes to the Oracle fund.
✅ Strict limits on issuance (if issuance is enabled in the future):
→ Based on:
• Base capital SDR
• Destruction history
• Daily issuance limit = 80% of LUNC destroyed in the last 30 days (max. 100,000 SDR)
✅ Already in effect – available for community use.
✅ This is not a plan for re-pegging – USTC will no longer be considered a stablecoin or pegged to $1.
🔄 How the new exchange system works:
Exchange USTC for LUNC → You give USTC and receive LUNC from the fund.
Exchange LUNC for USTC → You give LUNC and receive USTC from the fund.
Note: If more users exchange in one direction (e.g., only USTC → LUNC), the fund may run out. This may reduce the impact of LUNC destruction but increase USTC destruction.
⚠️ Why this is important:
This is the first time Terra Classic has completely abandoned the issuance of new LUNC. Instead of relying on inflation, it focuses on pre-funded liquidity and supporting value based on destruction.
📌 Final summary for LUNC holders:
🔸 MM 2.0 is active and aims to make the economy more sustainable.
🔸 No new tokens are created through exchanges — significant deflationary shift.
🔸 Focus on destruction rather than issuance — and reduced dependence on LUNC inflation.
🔸 Watch how the liquidity fund behaves during high exchange activity — this may affect price pressure on both LUNC and USTC.$USDC $USTC $LUNC
