USTC Test Environment

Introduction

During the 2nd quarter, following the completion of the Cosmwasm upgrade to parity, the L1 Task Force proposes utilizing a small portion of the Q2 compute budget to set up a USTC test environment for the L1 team. This should be possible to complete without any impact on currently scheduled activities. We feel that having community authorization to focus on building the infrastructure required to test proposed approaches to a USTC repeg would be of significant benefit to the Luna Classic ecosystem.

This proposal seeks the authorization and use of already provisioned compute budget for the purposes of establishing a test environment specifically geared toward testing USTC repeg ideas. As a result, this proposal is a text proposal, and no additional community spend is required currently. It should be noted that only compute budget would be allocated for this item.

If renewed for Q3, a large component of the L1 Task Force’s activities would likely be focused on USTC development. This is based primarily on the feedback obtained from the Community Oversight Committee regarding the top development priorities identified by the community, as well as the logical next steps to better restore the ecosystem and enhance the process of achieving the stated goals of USTC revitalization and Luna Classic supply reduction.

Future uses (following the completion of Q2 deliverables and onwards) for the USTC test environment could include, but are not limited to:

Recreating a simulation of the depeg event:

  • Identifying possible capital controls that could have prevented the “death spiral” following the USTC depeg (e.g., capping maximum supply).

  • Leaving the mint/burn mechanism in place and placing a cap on maximum supply.

  • Conducting a series of transactions to confirm the behavior of Luna Classic and USTC mint/burn behavior. Collecting, documenting, and analyzing data.

Creating a simulated repeg event:

  • With the market module re-enabled, creating “perfect world” conditions to simulate a repeg to $1 USD (e.g., 1 year to achieve $1 repeg). Determining the required transaction volume and ideal mechanism.

  • Building upon proposals already suggested, conducting a gradual incremental repeg to $1 USD:

  • Using a tax divergence strategy (developing a proof of concept for Redline Drifter’s proposal that passed governance).

  • Using a volume-based strategy with a deflationary fee applied (simulating on-chain volume for USTC).

Testing proposed strategies for maintaining USTC peg:

  • Stress-testing new ideas suggested for maintaining a USTC peg to obtain efficacy data.

  • Investigating possible USTC incentives:

  • Reviewing how the Oracle module is currently funded and ensuring future staking sustainability while simultaneously investigating USTC staking options.

Acceptance Criteria

A new on-demand test environment for use by the L1 team, analysts, and other developers within the community is created for USTC.

While there has been much discussion related to USTC, there has not been a significant amount of work completed in terms of real-world development or testing. As ongoing discussions with central exchanges are currently taking place regarding USTC, the L1 Task Force anticipates that a large component of their work in Q3 could be geared toward USTC development.

Consequence of a YES vote

If we vote YES on this proposal, the L1 Task Force will be authorized to utilize existing compute budget funding toward creating a USTC test environment.

Consequence of a NO vote

If we vote NO on this proposal, the L1 Task Force will not proceed with the creation of a USTC-specific test environment.

26 Likes

Ustc peg?Yes yes yes!

9 Likes

Si with Veto!

4 Likes

It will need to get done inevitably at some point, so now is as good time as any.

5 Likes

It is a strong yes for me!

5 Likes

The sooner the better

4 Likes

Yep I’m onboard with this one

3 Likes

No with veto

3 Likes

Strong YES!

6 Likes

Yes ! Another step forward. This has to be done.

5 Likes

I will vote YES

5 Likes

Exactly, it look a bit strange…They dont know how to take money from community so they proposing some ‘hot’ idea which community will support. We must be very careful right now

1 Like

Me personally I am against USTC repeg and when time will come probably I will vote against such proposal.

However I totally agree with compute funds for test environments and I’ll vote yes for this particular proposal

2 Likes

This is what the community has been waiting for. Bringing USTC back to the Terra classic ecosystem should be done by professionals, that’s our L1TF.

please vote YES

If we want to be rich

5 Likes

Yes,sooner the better !

5 Likes

so what are you doing here? before crash, LUNC has a value because of USTC. The most important thing to bring back prize and value to LUNC is to back prize to USTC

6 Likes

İf you want go make ,dont want more pay for funds
Scammer

2 Likes

If you read it closely, he says using the already allocated funds, this means they dont want more money but want to use some of the budget they already have to make this… please learn to read before calling people scammers.

13 Likes

You are very little smart.

3 Likes

Redlines Repeg of USTC signal was passed. This is in relation to it as repeg will need to be tested.

7 Likes