LUNC To $1? How Terra Can Be Re-Engineered

A Proposal For Members of The Luna Classic Community

Daniel Mark Harrison


A lot is being discussed lately in Blockchain circles about what will happen to Luna Classic, now labelled LUNC, after Terra Luna put up a new Blockchain in place of the old one, the price of the main currency of which has dropped from $100 to around 1/1000th of a cent in the past month. The short answer is, either not a lot, or a helluva a lot, depending what the seemingly ever-expanding numbers of members of the LUNC community decide to do about the coin.

I believe that LUNC is perfectly salvageable, and that so is the stablecoin USTC to which it is tied, given the right adjustments. The main realization that needs to sink in is that one currency ought to be a transactional currency, used for making payments, while another ought to be used as a store of value currency, This proposal takes this into account by assuming USTC becomes a transactional currency while LUNC is used as a store of value currency by users.

The primary advantage the configuration of this proposed algorithm has over the one that was proposed in the Terra White Paper is that the Terra team never took into account the differences between price/supply values between the two currencies, whereas this proposed model puts such equation at the front and center of the blockchain’s proposed reconfigured minting tokenomics.

This proposal envisages either one of two scenarios: changes made directly to the coding of the core chain, or, failing that, a hard fork of the chain being deployed with the adjustments of the proposal inserted, essentially reconfiguring the chain’s modus operandus.

Proposal For LUNA Classic Chain

In order to bring back the LUNC chain, it is necessary to do three things:

1) Make USTC a viable currency for use by merchants etc

2) Make LUNC a viable store of value

3) Make a viable exchange mechanism between both coins so that holders of one coin can convert to the other coin by means of burning one and minting the…