Top crypto exchanges Binance, Kucoin have already announced support for upgrade
Terra Classic is set to undergo a network upgrade, which would alter the burn tax rate. The Terra Classic (LUNC) network upgrade is expected to take place at the Terra Classic block height of 12,902,400, or approximately on May 23 at 10:00 p.m. (UTC).
The Proposal to Increase Burn Tax, or Proposal 11515, put forth by the community aims to increase the burn tax from 0.2% to 0.5%. The proposal will be enacted in the Terra Classic upgrade at the estimated time stated above.
The move aims to reduce the LUNC supply via the burn tax. Top crypto exchanges Binance and Kucoin have already announced support for the upgrade.
In line with this, Binance says it will temporarily suspend deposits and withdrawals for LUNC and USTC via the Terra Classic (LUNC) network from May 23 at 9:30 p.m. (UTC).
Terra Classic continues to receive constant upgrades stemming from various proposals that attempt to restore its former glory. In May 2022, the Terra ecosystem collapsed after the UST stablecoin lost its dollar peg.
An update that enabled governance-approved features on the Terra Classic blockchain and security updates went live at the Terra Classic block height of 1,812,900 on May 17.
New USTC test environment proposal launches
A proposal that seeks the authorization and use of an already provisioned computing budget to establish a test environment specifically geared toward testing USTC repeg ideas has just been launched.
📌 Please see the following proposal which would authorize the L1 Task Force to build a USTC test environment. 🌕🌕
📌 We are focused solely on parity right now, and this will not take any time away from that effort con’t.Note: https://t.co/378J7SXKZe pic.twitter.com/rViOjVHjZg
— Terra Classic official (@terrac_official) May 23, 2023
Establishing a test environment for USTC would entail steps such as recreating a simulation of the depegging event. This includes identifying possible capital controls that could have prevented the “death spiral” following the USTC depeg (e.g., capping maximum supply).
The steps include leaving the mint/burn mechanism in place and placing a cap on the maximum supply, conducting a series of transactions to confirm the behavior of Luna Classic and USTC mint/burn behavior, and collecting, documenting and analyzing data.
Other steps include creating a simulated repeg event and testing proposed strategies for maintaining the USTC peg.