{"id":20361,"date":"2023-04-28T20:55:48","date_gmt":"2023-04-28T20:55:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/terra-classic-advocates-propose-plan-to-re-establish-ustcs-peg-with-us-dollar-tokens-value-surges-by-over-9-bitcoin-news\/"},"modified":"2023-04-28T20:55:48","modified_gmt":"2023-04-28T20:55:48","slug":"terra-classic-advocates-propose-plan-to-re-establish-ustcs-peg-with-us-dollar-tokens-value-surges-by-over-9-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/terra-classic-advocates-propose-plan-to-re-establish-ustcs-peg-with-us-dollar-tokens-value-surges-by-over-9-bitcoin-news\/","title":{"rendered":"Terra Classic Advocates Propose Plan to Re-Establish USTC’s Peg With US Dollar, Token’s Value Surges by Over 9% \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Almost 12 months back, terrausd (UST), an algorithmic stablecoin, suffered a detachment from the U.S. dollar, causing the Terra ecosystem to crumble shortly thereafter. At present, supporters of the Terra Classic blockchain community are deliberating on a plan to revive the ecosystem by re-establishing the once-stable token\u2019s peg with the U.S. dollar. In response to the proposed development, the value of UST, renamed USTC, has escalated by more than 9% in the past 24 hours. <\/strong><\/p>\n

Terra Classic Community Plans to Take Action to Restore USTC\u2019s Peg With USD<\/h2>\n

Terra Classic blockchain supporters aim to revive the algorithmic stablecoin\u2019s ecosystem by restoring the token USTC<\/a>\u2019s value parity with the U.S. dollar. A Terra Classic community member using the pseudonym \u201cRedlinedrifter\u201d submitted the proposal<\/a>, affirming that Do Kwon\u2019s decentralized money creation was a positive initiative but that \u201cserious issues need to be addressed\u201d for the community to re-establish the token\u2019s value peg with the U.S. dollar.<\/p>\n

Redlinedrifter presented the \u201cDivergence Protocol\u201d idea, which \u201coperates by applying an algorithmic\/dynamic fee equivalent to the difference between the peg and the market price.\u201d The innovative mechanism would implement a dynamic fee structure to impose a fee proportional to the deviation between the $1 peg and the token\u2019s market value. The divergence fee structure represents a fresh strategy to tackle previous challenges that hindered the USTC\u2019s ability to maintain its U.S. dollar peg.<\/p>\n

This is not the first time members of the Terra community have proposed revamping Do Kwon\u2019s stablecoin idea. In October 2022, a new \u201csoft-pegged stablecoin\u201d concept built on the Terra Phoenix network was introduced in a white paper<\/a>. Following the news of USTC\u2019s revitalization plan, the once-stablecoin asset has increased in value by 9% against the U.S. dollar. After reaching a low of $0.0195 per unit on Friday, USTC has risen to a high of $0.0218 per coin by 1:15 p.m. Eastern Time.<\/p>\n

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Algorithmic stablecoin<\/a>, Blockchain<\/a>, community proposal<\/a>, Divergence Protocol<\/a>, do kwon<\/a>, dynamic fee<\/a>, stablecoin ecosystem<\/a>, Terra Classic<\/a>, Terra Classic proponents<\/a>, Terra Phoenix<\/a>, U.S. dollar<\/a>, USTC<\/a>, value peg<\/a><\/div>\n<\/div>\n

What do you think of Terra Classic\u2019s proposed Divergence Protocol to re-establish USTC\u2019s value parity with the U.S. dollar? Do you believe this innovative approach will solve the challenges faced by algorithmic stablecoins? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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