I know some of you have been waiting a long time for this but we are finally able to release information about the stablecoin product we have been working on.
Ustprotocol.com
common.xyz/terra-luna-cla…
This gives Terra Classic the stablecoin product it always should have had.
- Fully backed initially, rapidly moving to overcollateralised.
- The ponzinomics of Anchor have been replaced with real yield derived from extremely safe stablecoin LP strategies and cross chain arbitrage.
- No Lockup Yield - This is probably the biggest USP of this product. Yield is paid autonomously while in your wallet, on an orderbook, in LP strategies and even while using L2 protocols. There's not a single other token let alone a stablecoin offers this, giving us a competitive edge over all other stables and making us an attractive product for both retail and institutions/market makers.
- #LUNC/USTC Supply/debt - The legacy debt and supply issues are dealt with through the purchase and burning of LUNC/USTC a share of the yield generated on LP strategies on other chains. With low to moderate adoption we are talking about generating enough profits to actually deal with the debt ourselves.
I think we can all agree #USTC was an ingenious product, but it was inherently flawed, and it wasnt until it was too late that these flaws were realised. By creating USTD we gain all all the benefits USTC had that drove its success, (plus more with the additional yield distribution USP), but with none of the flaws/risks/ponzinomics attached. Fundamentally this has the ability to generate the profits we need to deal with the legacy debt that cripples our chain while giving us a usable and competitive stablecoin thats used across DEFI.
A net-deflation engine that can open without hyperminting, throttles itself as supply shrinks, and cannot be trick-printed through stale prices.
This is based on the original “Terra Classic Market-Module 2.0” draft, but incorporates mechanisms to avoid the mint/burn, which caused concerns among several community members.
Study: #TerraUSD Crash Caused by Coordinated Trading Attack
Researchers have found new evidence that the $3.5 billion TerraUSD and $LUNA crash in 2022 was likely caused by a coordinated trading attack. Instead of normal market activity spread across many traders, just a few controlled nearly all trading right before the collapse. This pattern suggests a planned effort to crash the system.
The team used a method called temporal multilayer graph analysis to study trading behavior on Ethereum. Their data showed that five or six traders acted in sync, each holding almost the same market share — too precise to be random.
They developed the tool with Pometry, a spin-out from Queen Mary University of London. The study was published in ACM Transactions on the Web by Cheick Tidiane Ba, Ben Steer, Matteo Zignani and Richard Clegg.
Over the past month, both Terra Luna Classic ( $LUNC ) and Ethereum ( $ETH ) have experienced declines in their market values.
Terra Luna Classic (LUNC): •March 2025: LUNC’s price decreased by approximately 3.57%, starting at $0.00006749 and closing at $0.00006508. •April 9, 2025: LUNC is trading at approximately $0.00005554.
This represents a further decline of about 14.6% since the end of March.
Ethereum (ETH): •March 2, 2025: ETH was trading at approximately $2,213.99. •April 9, 2025: ETH is priced at about $1,483.35.
This indicates a decrease of approximately 33% over the past month.
The question of whether FTX was involved in the Luna/UST depeg and crash in May 2022 is a complex one, with no definitive proof but plenty of speculation and some circumstantial evidence floating around.
Here’s what we know: The Terra ecosystem, with its algorithmic stablecoin UST and native token Luna, collapsed spectacularly when UST lost its $1 peg, triggering a death spiral that wiped out around $40 billion in market value. This started around May 7, 2022, when massive sell-offs of UST—over $2 billion unstaked from the Anchor Protocol—kicked off a panic. Luna’s price tanked from $80 to fractions of a cent as the system’s mint-and-burn mechanism failed under pressure.
Now, where does FTX fit in? After FTX’s own collapse in November 2022, U.S. prosecutors reportedly started looking into whether Sam Bankman-Fried (SBF), FTX’s founder, and his hedge fund Alameda Research might have played a role in Terra’s downfall. The theory is that they could have manipulated markets to profit from the crash, possibly through shorting Luna or orchestrating trades that destabilized UST. Some on-chain whispers—like claims from crypto analysts on X—suggest FTX and Alameda pulled large amounts of UST from liquidity pools (e.g., $200 million each with Celsius) at a vulnerable moment, potentially accelerating the depeg. Do Kwon, Terra’s founder, even pointed fingers, alleging Alameda sold 500 million UST in February 2021 to drain Curve pools and later shorted Bitcoin to weaken Luna Foundation Guard’s reserves during the May crash.
But here’s the rub: there’s no smoking gun. Investigations were in early stages as of late 2022, and no conclusive findings have pinned FTX as the mastermind. Blockchain analytics like Nansen’s May 2022 report argue the depeg wasn’t a single-player attack but a cascade of events—big swaps on-chain (e.g., 85 million UST for USDC on May 7) and poor liquidity on centralized exchanges like Binance and FTX.
USTC’s expertise in high-performance computing and algorithm optimization could help Wanchain address scalability bottlenecks in cross-chain transactions. This might result in faster, more efficient bridges between blockchains like Ethereum and Polkadot, enhancing Wanchain’s throughput.
2. Advancement of Decentralized Identity Solutions
Combining USTC’s research in secure data systems with Wanchain’s decentralized infrastructure could lead to innovative self-sovereign identity (SSI) protocols. These could enable secure, privacy-preserving identity verification across multiple blockchains, benefiting sectors like healthcare or finance.
3. Integration of Quantum-Resistant Blockchain Features
With USTC’s leadership in quantum technology (e.g., its quantum communication projects), a collaboration could pioneer quantum-resistant cryptographic methods for Wanchain. This would future-proof Wanchain’s ecosystem against quantum computing threats, a growing concern in blockchain security.
4. Development of Green Blockchain Technologies
USTC’s work in energy-efficient systems and renewable energy research could inspire Wanchain to reduce the environmental footprint of its blockchain operations. This might involve optimizing consensus mechanisms or integrating energy grid data, aligning with global sustainability goals.
5. Access to Government and Industry Networks
USTC’s connections with Chinese government bodies and state-owned enterprises (e.g., its State Grid ties) could open doors for Wanchain to pilot blockchain projects in regulated sectors. This could accelerate adoption of Wanchain’s technology in areas like supply chain tracking or digital currency infrastructure.
#LUNC “inflation rate” comparison with other POS blockchains 🔥
#LUNC “inflation rate” comparison with other POS blockchains 🔥 Ethereum ( #ETH )
- Inflation Rate: Since the Merge in September 2022, Ethereum transitioned to PoS, significantly reducing its issuance. As of March 2025, Ethereum’s inflation rate is near zero or slightly deflationary, depending on network activity. Base issuance is about 0.5-1% annually (around 970,000 ETH minted yearly for a 120 million ETH supply), but this is offset by EIP-1559, which burns transaction fees. In 2024, burns often exceeded issuance, making ETH deflationary at times (e.g., -0.1% to -0.5% annualized during high activity).
- Staking Rewards: Validators earn 4-5% APR, funded partly by issuance and partly by fees. Unlike LUNC, Ethereum balances issuance and burns, aiming for stability rather than aggressive deflation.
- Comparison: Ethereum’s near-zero to negative inflation contrasts with LUNC’s steeper deflation, but both rely on burns to counteract issuance (Ethereum’s burns are activity-driven, LUNC’s are deliberate).
Cardano (#ADA)
- Inflation Rate: Cardano has a fixed maximum supply of 45 billion ADA, with about 36 billion in circulation by March 2025. Its inflation comes from a reserve pool that releases tokens at a declining rate. In 2024, the inflation rate was around 3-4% annually, dropping as the reserve depletes (projected to near 0% by 2030). This translates to roughly 1-1.5 billion ADA added yearly.
- Staking Rewards: Stakers earn ~4-5% APR, funded by this reserve and transaction fees. Cardano’s PoS (Ouroboros) incentivizes participation with predictable inflation, unlike LUNC’s burn-driven model.
- Comparison: Cardano’s positive but decreasing inflation (3-4%) is the opposite of LUNC’s -3.5%, reflecting a growth-oriented design versus LUNC’s supply-reduction focus.
Solana ( #SOL )
- Inflation Rate: Solana starts with a higher inflation rate that decreases over time. As of 2025, it’s likely around 5-6% annually (down from an initial 8% at launch in 2020), based on its schedule (1.5% long-term target). With a circulating supply of ~550 million SOL, this means 27-33 million SOL added yearly. Inflation rewards validators and stakers, with 90% of new issuance going to them.
- Staking Rewards: Staking yields are 5-7%, funded by this inflation plus fees. Solana’s PoS (with Proof-of-History) prioritizes high throughput, accepting higher initial inflation for growth.
- Comparison: Solana’s 5-6% inflation dwarfs LUNC’s -3.5% deflation. Solana inflates to scale, while LUNC deflates to recover value post-crash.
Cosmos ( #ATOM )
- Inflation Rate: Cosmos, also Tendermint-based like LUNC, has a dynamic inflation rate between 7-20%, adjusting based on staking participation. If 67% of ATOM is staked (the target), inflation is 7%; it rises to 20% if staking drops below that. As of 2025, with ~400 million ATOM in circulation and high staking (~60-70%), inflation is likely ~7-10%, or 28-40 million ATOM yearly.
- Staking Rewards: Stakers earn 8-15% APR, funded by this inflation. Cosmos incentivizes security through higher issuance when participation lags, unlike LUNC’s fixed deflation.
- Comparison: Cosmos’s 7-10% inflation is a sharp contrast to LUNC’s -3.5%, highlighting different priorities—Cosmos boosts staking, LUNC reduces supply.
Key Insights and Contrasts
- Deflation vs. Inflation: LUNC is unique among these PoS chains for its deflationary nature (-3.5%) due to burns, while others inflate supply (Ethereum: ~0%, Cardano: 3-4%, Solana: 5-6%, Cosmos: 7-10%). This stems from LUNC’s post-collapse recovery strategy versus the growth/security focus of others.
- Reward Funding:
LUNC’s staking rewards rely on fees and burn taxes, not new issuance, unlike Ethereum (issuance + fees), Cardano (reserve + fees), Solana (issuance + fees), and Cosmos (issuance). This makes LUNC’s model less predictable for stakers but aligns with its deflationary goal.
The Luna Classic DAO is proud to announce its LLC approval by the great State of Wyoming.
We welcome the #LUNCcommunity on this journey to take #LunaClassic and $WESO to new heights. 🤝
What does it mean? 👇👇👇
- The Luna Classic DAO's LLC approval in Wyoming marks it as the first U.S. state to legally recognize Decentralized Autonomous Organizations as LLCs, a move formalized under Wyoming's DAO law effective July 1, 2021.
- This approval enhances Luna Classic's ($LUNC ) legal structure, potentially increasing investor confidence and enabling the project to engage more effectively in regulated financial activities.
- The mention of $WESO ties into WESO's role as an industrial landlord for blockchain economies, suggesting a strategic partnership or integration to bolster Luna Classic's infrastructure.
- Luna Classic's burn mechanism, which reduces its token supply to potentially increase value, continues to be a key feature, as highlighted in recent discussions about its market strategy and community resilience.
Terra Luna Classic just hit a Nakamoto Index of 6. For those wondering what that means—buckle up, it’s a sign the network’s getting more decentralized.
Luna Classic community is looking for options to peg back stablecoins👇
1/15 🚨 Re-pegging Terra’s small stablecoins: The fastest way to rebuild confidence? Let’s break it down. 🧵👇 #Crypto #Terra #USTC #LUNC
2/15 While everyone focuses on USTC’s massive supply (8.19B), the real opportunity lies in low-supply stablecoins that are far easier to re-peg! 💡
3/15 🏆 The top small-cap stablecoins with the lowest total supply: • CHTC (15,766 CHF) 🇨🇭 • EUTC (62,541 EUR) 🇪🇺 • CATC (19,074 CAD) 🇨🇦 • HKTC (36,449 HKD) 🇭🇰 • NOTC (31,028 NOK) 🇳🇴
4/15 Why focus on these? ✅ Lower supply → Easier to restore peg ✅ Requires less liquidity to stabilize ✅ Builds confidence before tackling bigger assets like USTC
5/15 🔥 Step 1: Burn excess supply • If any of these stablecoins were over-issued, controlled burns can quickly restore balance • With a supply under 100K, even modest burns could have a huge impact!
6/15 🔄 Step 2: Liquidity pools (LPs) for arbitrage • LPs allow traders to buy below $1 and sell above $1 • If liquidity is deep enough, arbitrage will naturally restore the peg • Market makers can support this with incentives
7/15 ⚖️ Step 3: Demand & Utility • Creating real use cases for small-cap stables ensures lasting stability • Example: Payments, DeFi integrations, on-chain Forex trading • A pegged stablecoin is useless without demand!
8/15 🚀 Step 4: Market Maker Support • Working with CEXs & DEXs to establish peg support • If an entity offers to back-stop price deviations, the peg becomes more resilient
9/15 🛠 Step 5: Governance & Treasury Reserves • A treasury can hold USD, BTC, or other assets as backing • This helps stabilize price movements if arbitrage alone isn’t enough.
As was stated by founder of Cardano, @IOHK_Charles , one of the main focus for Cardano this year will be stablecoins. #LUNC is quite rich with stablecoins , that can be used. #LUNCcommunity is willing to collaborate with Cardano and integrate #USTC for mass adoption. I created few key points how it can beneficial for both parties. 1. Decentralised Finance (DeFi) Integration Use Case: USTC can be integrated into Cardano’s growing DeFi ecosystem for various applications. •Stable Asset for Lending/Borrowing: USTC can serve as a stable collateral option in lending protocols like Aada Finance or Liqwid, reducing the volatility associated with native tokens like ADA. •Liquidity Pools on DEXs: USTC can be paired with ADA and other tokens on Cardano DEXs like Minswap and SundaeSwap, creating liquidity and earning rewards for providers. 2. Payments and Remittances Use Case: Cardano’s scalability and USTC’s stability make them a perfect match for payment and remittance systems. •Global Transfers: USTC can enable low-cost, fast cross-border payments using Cardano’s low-fee network. •Merchant Adoption: Cardano’s partnerships can onboard USTC as a payment option for e-commerce and physical stores in regions adopting blockchain payments. 3. Gaming and NFTs Use Case: USTC can become a stable medium of exchange in Cardano-based gaming ecosystems and NFT marketplaces. •In-Game Currency: USTC can be used to buy assets or participate in Cardano-based metaverse projects. •NFT Purchases: Cardano NFT platforms like JPG Store could support USTC for NFT transactions, offering price stability compared to ADA. 4. Supply Chain and Micropayments Use Case: USTC can be utilized in Cardano’s supply chain solutions. •Microtransactions: USTC can facilitate small payments for IoT devices or supply chain tracking fees on platforms like Scantrust or Atala Trace. •Payment Settlements: USTC provides a stable medium for settlement in global supply chain systems powered by Cardano. 5. Savings and Stable Yield Options Use Case: USTC can be deployed in yield farming and staking within Cardano’s ecosystem. •Savings Accounts: DeFi apps on Cardano can offer interest-bearing USTC accounts. •Yield Farms: Users can stake USTC in liquidity pools or lending platforms, promoting stable rewards. 6. Identity and Governance Use Case: USTC could be linked with Cardano’s Atala PRISM for identity or governance systems. •Identity Payments: USTC could facilitate payments for issuing decentralized identities. •Governance Votes: Users can pay for governance participation or voting mechanisms using USTC, ensuring fairness and stability. 7. Charity and Social Impact Use Case: USTC can support Cardano’s social impact initiatives. •Transparent Donations: Using USTC for donations ensures that funds retain their value over time. •Stable Funding for NGOs: Cardano’s partnerships with NGOs could incorporate USTC for funding projects in developing regions. How #USTC benefit Cardano?: 1.DeFi Growth: USTC provides a stable asset for lending, borrowing, and liquidity pools, boosting Cardano’s decentralized finance (DeFi) ecosystem. 2.Increased Adoption: A stablecoin attracts more users and businesses, enabling global payments, remittances, and e-commerce on Cardano. 3.Cross-Chain Interoperability: Collaboration with USTC connects Cardano to #TerraClassic’s ecosystem, enhancing interoperability and shared liquidity. 4.Transaction Volume & Fees: Every USTC transaction on Cardano generates fees paid in #ADA, increasing ADA demand and network activity. 5.Real-World Utility: USTC’s stability enhances the appeal of Cardano for gaming, NFTs, and merchant payments, driving #RWA. #LUNC #LUNCcommunity #Cardano
How #ADA can collaborate with #LUNC and what benefits collaboration will give to both parties?👀 Utility in Cardano’s Ecosystem •Cardano’s Djed Stablecoin: Cardano has launched Djed, a decentralized, overcollateralized stablecoin designed to provide price stability in DeFi applications. • USTC as an Additional Stablecoin: USTC could be used as an alternative stablecoin within Cardano’s DeFi ecosystem, providing diversity and choice for users seeking stable assets for lending, borrowing, or trading. 2. Cross-Chain Liquidity Pools •Interoperability for Stablecoin Liquidity: By creating bridges between Terra Classic and Cardano, USTC could be used in cross-chain liquidity pools on Cardano’s DeFi platforms. •Benefit: This would increase USTC’s utility while enhancing liquidity in Cardano’s DeFi ecosystem. 3. USTC in NFT and Gaming Platforms •Stable Payments for Cardano’s NFTs: Cardano has a thriving NFT ecosystem. USTC could serve as a payment method for NFT marketplaces or blockchain-based games on Cardano. •Example Use Case: NFT purchases in Cardano’s marketplaces could integrate USTC for users who prefer multi-chain stablecoin options. 4. Terra Classic’s Re-Pegging Efforts •Algorithmic Stability Research: Cardano’s research-driven approach could contribute to improving USTC’s stability mechanisms. Collaborations could focus on: •Developing hybrid models combining algorithmic and collateralized mechanisms. •Enhancing transparency and trust in stablecoin mechanisms. •Benefit: This could make USTC more robust and viable for integration into Cardano-based platforms. 5. Decentralized Finance (DeFi) Applications •USTC as Collateral in Lending Platforms: •USTC could be added as a collateral option on Cardano-based DeFi platforms like Meld or Liqwid Finance. •Users could borrow ADA, Djed, or other tokens by locking USTC as collateral. •Benefit: Expands use cases for USTC and creates multi-chain financial products. 6. Joint Governance Initiatives •Both Cardano and Terra Classic emphasize decentralized governance. A collaboration could: •Introduce USTC into Cardano’s decentralized governance tools as a utility token for voting or funding proposals. •Share governance best practices, especially as Terra Classic attempts to recover and stabilize its ecosystem. 7. Community-Driven Development •Joint Community Hackathons: •Organize joint hackathons or grant programs encouraging developers to build applications that integrate USTC with Cardano’s ecosystem. •Example Projects: DeFi applications, interoperable wallets, or multi-chain payment gateways. 8. Payment and Settlement Solutions •USTC could be integrated into Cardano-based payment systems, enabling faster and cheaper cross-border transactions compared to fiat. •Example: Leveraging USTC alongside ADA or Djed for international remittances or merchant payments. #LUNC #ADA #TerraClassic #Cardano #LUNCcommunity #CardanoCommunity #Defi #Web3 #Governance #StableCoins
🧵 The Legendary XRP Comeback & Why #TerraClassic (LUNC) Could Follow a Similar Path 🚀
1/ XRP’s ATL & ATH Story 📉➡️📈 In July 2014, XRP hit its All-Time Low (ATL) of $0.0028. Fast forward to January 2018, XRP reached an All-Time High (ATH) of $3.40 — an incredible rise of over 121,000% in just 3.5 years.
2/ How Did XRP Recover? Despite regulatory challenges & market crashes, XRP leveraged: ✅ Strong community backing ✅ Ongoing real-world use cases (RippleNet) ✅ Resilience in long-term market cycles
The lesson? Even when sentiment was low, XRP never disappeared.
3/ Enter Terra Classic (LUNC): The Parallel Story 📉 After the Terra ecosystem collapse in May 2022, LUNC dropped to near-zero, shaking the crypto world. Many declared it dead.
But like #XRP, LUNC’s story isn’t over.
4/ #LUNC’s Potential for a Comeback 🚀 Here’s why #LUNC could stage its own legendary recovery: ✅ Strong Community: A global army of believers still supports LUNC. ✅ Burn Mechanism: Token burns are actively reducing LUNC supply. ✅ Decentralized Efforts: Developers & community initiatives drive rebuilding.
5/ Resilience in Crypto Cycles 🔄 History shows that crypto projects can recover when: •Community-driven efforts stay strong •Supply dynamics improve •Utility & innovation return
LUNC has elements that could align with this formula.
6/ The Road Ahead 🌐 While LUNC’s comeback won’t be instant, history (like XRP’s recovery) teaches us that patience & belief in fundamentals can reward long-term holders.
Main developer from Luna Classic Blockchain @TheVinhNguyen4 just posted commonwealth discussion for $LUNC core security upgrade package. commonwealth.im/terra-luna-cla…$51k is required for whole job to be done within 11 weeks duration, and equivalent of #LUNC will be calculated upon approval the proposal. https://commonwealth.im/terra-luna-classic-lunc/discussion/14878-terra-classic-core-security-upgrade-package