Currently, the #TerraClassic project ( $LUNC ) and its algorithmic stablecoin #TerraClassicUSD ( $USTC ) are still in a recovery phase following the dramatic collapse of 2022.
Terra Classic (LUNC):
- LUNC is the inherited token from the original Terra blockchain, which suffered hyperinflation after the collapse of UST.
- The community has implemented token burns and controls to reduce the supply, which decreased from 6.9 trillion to about 5.5 trillion tokens, making LUNC now deflationary.
- Staking is enabled, with annual yields of around 10-20%, incentivizing holders to participate in the network.
- The network remains active with a community called the "LUNC Army" that drives its development and seeks to restore its value and utility, although the ecosystem is much smaller than before the collapse.
USTC (TerraClassicUSD):
- USTC is an algorithmic stablecoin that has been decoupled from the dollar since the collapse, and it currently trades at a fraction of $1.
- It is not backed by reserves; instead, its price is adjusted by an algorithm that incentivizes burning LUNC to mint USTC and vice versa, attempting to maintain parity.
- There are active plans and experiments to try a "re-peg" or recovery of the peg to the dollar, but in the short term, its price is expected to remain low without significant advances.
- Long-term forecasts (2027-2030) are optimistic only if significant progress is made; otherwise, USTC could remain at low levels without recovering its original value.
Terra Classic (LUNC) is in the process of rebuilding with an active community and deflationary measures, while USTC remains an algorithmic stablecoin that is decoupled and trying to recover its peg with still uncertain results.
