Terra Classic Market Module 2.0 Announcement

The Terra Classic (LUNC) community has announced the new Terra Classic Market Module 2.0 (MM 2.0). This version stands out with its mint-free feature, introducing significant changes to the Terra Classic ecosystem without creating new money.

Key Features of MM 2.0

• Instant Availability: The Marketplace Module is ready for immediate use.
• Swap Fees (0.35%): Half of the fees will be burned, while the other half goes to the Oracle Pool.
• New Minting Limitations: Up to 80% of the LUNC burned in the past 30 days can be minted (with a maximum of 100k SDR).

> Note: This is not a “repeg” proposal, meaning USTC aims to not return to $1 and will no longer be regarded as a stable asset. New LUNC will not be minted in swaps; instead, a pre-funded pool will be utilized to replace the traditional mint-and-burn process.

While various security measures have been implemented, if the community’s expectations for this mechanism are too high, it could lead to disappointment.

Clearing System Operation

• USTC – LUNC Exchange: Users provide USTC to receive LUNC from the pool.
• LUNC – USTC Exchange: Users provide LUNC to receive USTC from the pool.

For each swap transaction, half of the 0.35% fee charged will be burned, and the remainder will go to the Oracle Pool. Concentrated swaps in the USTC-LUNC direction may deplete the pool and fall short of expected LUNC burn rates, potentially accelerating USTC burns.

> Disclaimer: This is not investment advice.