From the Past to the Future: A Smart Legal Alternative to More Flexible Stablecoins
Details: Launching Dynamic Algorithmic Assets (Stable-like Assets)
Proposed Currencies:
Asset pegged to the Russian Ruble (RUB)
Asset pegged to the Euro (EUR)
Asset pegged to the Chinese Yuan (CNY)
Note: It is not called Stablecoins to avoid regulatory restrictions but is referred to as:
Adaptive Value Assets
Smart Peg Units
Experimentally Pegged Assets
Proposed Use:
These assets are used within DeFi applications in the Terra Classic ecosystem.
Provides a price reference for national currencies, with limited volatility controlled algorithmically.
Benefits of Global Market Integration
By launching algorithmically pegged assets to the Russian Ruble, Euro, and Chinese Yuan, the Terra Classic network opens access to three global economic powers.
These assets can be used as a bridge for LUNC adoption in Russia, Europe, and China.
Enables users to transact and store value using a familiar currency reference.
This enhances real use and expands LUNC's appeal globally.
Legal classification and regulatory flexibility (smart legal innovation)
Given the increasing restrictions imposed on stablecoins by the EU, the US, and others, this new model suggests avoiding the designation 'Stablecoins'.
How does this model succeed?
These assets are marketed as not being regulatory stable currencies.
Instead, they are presented as algorithmically controlled volatility assets.
The experience of the USTC collapse is utilized as evidence that the new system is more resilient and not subject to the same regulatory classification.
It is prevented from being classified as direct financial instruments (Fiat-Backed), keeping it within the decentralized framework.
Proposed Terms:
Adaptive Value Assets
Smart Peg Units
Experimentally Pegged Assets
Integrating USTC into the new system (optional)
A portion of the fees from these new assets can be periodically allocated to gradually burn USTC:
Gradually restores its symbolic value.
Not presented as a stable currency, but as a community asset backed by the system.
Increases system connectivity and encourages USTC holders to support the new system.
Circuit Breaker Mechanism
Function:
If the value of any of the three assets drops by 3% without a valid reason:
• Transactions are temporarily halted.
• A technical team is formed for verification.
• Work only resumes with community voting.
Benefits:
Fortifying the network against attacks and deadly volatility.
Protecting users from sudden collapses.
Maintaining system stability autonomously.
