Some members of the Terra Rebels, a group in the Terra Classic (LUNC) community, have shared a reconnection proposal aimed at helping to restructure TerraClassicUSD (USTC) by developing an Algorithmic Tangible Token (AFT). However, it seems that many owners are not yet ready for this kind of initiative, as the plan has been met with strong opposition.
Terra Rebels author Alex Forshaw, Edward Kim and Maximilian Bryan, proposes the creation of a new AFT called USTN. The algorithmically exchangeable token, which shares many similarities with a stablecoin, will be primarily backed by Bitcoin.
The group plans to mint 500 billion LUNCs to buy Bitcoin and has assured the community that adopting the new token will promote faster LUNC burns. The proposal states that about $5 billion in adoption will burn 2.4 trillion Terra Classics, which the team believes is achievable in a year.
LUNC Burn, the Twitter handle that tracks burning activity in the Terra Classic community, said the idea is “the craziest” and “outrageous” they’ve “heard yet.” The Twitter account also questioned why investors should be the ones shouldering “the creation of a new stablecoin.”
“This plan by @4lex_4sh4w_TR to get us $Lunc investors to fund the creation of a new stablecoin (even though he’s not actually calling it a stablecoin) is the craziest thing with the community I’ve heard so far. Why in the if us $Lunc investors will pay for it,” one tweet read.
In another tweet, the Twitter account called the initiative “an experiment” and said it would simply “drop the price and reverse all the progress we’ve made so far.”
He noted this “experiment will drop the price and reverse all the progress we’ve made so far. It will also require cex and dex to actually list this new coin so it can be traded, which it won’t be simple by no one means, who will also pay for it. It will only work if we exchange.”
Another Twitter user commented on the proposal, saying: “It’s a bad and greedy idea, no different than a new Do wkon. Don’t be greedy, but be persistent.”
Popular Twitter community validator LUNC DAO called the proposal “intuitively a bad idea” and pointed out that “supply reduction through burning was the main narrative behind the whole revival.”