Comparing #MM3 to the USTD Proposal: Why We Must Awaken the $40 Billion Giant of Terra Classic, Not Chase Foolish Copies and Short-Term Personal Gains 
Hello, LUNC Family, developers, validators, and voters!
As the creator of the MM 3.0.0 proposal , I’m starting this open discussion thread to spark real thought and debate. Recently, the USTD proposal has surfaced, promising a new decentralized, automated yield-bearing stablecoin on the Terra Classic blockchain. It’s an intriguing idea on paper, but let’s be honest: Is this truly in the best interest of our community, or is it just another short-term copy of flawed models like USDe, riddled with high risks and prioritizing individual profits over collective revival?
In this article, I’ll provide a fair, fact-based comparison to make you think deeply. Terra Classic isn’t just any chain—it’s a sleeping giant with $40 billion in lost potential (based on pre-2022 TVL and market value). Protocols like Anchor, Mirror, Nexus, and Astroport are still alive and kicking; they just need organic revival. Why squander this by chasing foolish copies that offer quick personal yields but risk fragmenting our ecosystem? Let’s dive in, analyze the details, and unite for a true rebuild. My goal? To rally us around awakening the giant for shared, sustainable success—not scattered, risky experiments.
1. Vision and Goals: True Revival vs. Short-Term Distraction
MM3
(MAKE DEFI GREAT AGAIN)
MM3 focuses on organically restoring USTC to its $1 peg through 7 phased steps (default 24 months, accelerated via v3.5.0 upgrades). The core aim? Reactivate Terra Classic’s foundational protocols (Anchor, Mirror, Nexus, Astroport, plus Juris/Selenium integrations) under full DAO governance, without inventing new stablecoins. USTC becomes a robust, community-backed dollar with triple-anchor reserves (BTC, LUNC, USD1—boosted 10% for risk mitigation). We leverage Trump-era pro-crypto momentum for real DeFi growth, emphasizing self-sufficiency, audited rules, and Cosmos interoperability. Outcome: A sovereign ecosystem boosting TVL from ~$10M to $250M+, compressing LUNC supply to ≤3.5T over 3 years, and fostering collective prosperity.
USTD Proposal
USTD aims to build a new yield-bearing stablecoin (similar to USDe) on Terra Classic, with automated mechanisms for generating yields via staking or lending. It claims decentralization and automation, but it’s essentially a synthetic model reliant on funding rates—vulnerable in bear markets (lessons from USDe’s 2025 fragility and BaFin bans). The focus is short-term: Individual holder yields, without prioritizing the broader ecosystem revival. It turns Terra Classic into a host for new experiments, potentially diluting focus from USTC.
Why MM3 Wins? Imagine rebuilding a classic car versus slapping on a shiny new engine that might explode. MM3 awakens the $40B giant for everyone—collective gains through proven protocols. USTD risks personal profits at the expense of the whole, echoing past failures where hype led to crashes.
2. Technical Mechanisms: Robust Stability vs. Hidden Risks
MM3’s Rock-Solid Tech
- Oracles: Blended VWMA with Cosmos IBC cross-checks (Chainlink as formal fallback only for full self-sufficiency), including depletion buffers to prevent failures.
- AutoMint Engine: Phase-aware minting with oracle health factors, atomic distribution (35/30/25/10 split) for stabilization, LPs, protocols, and dev/legal funds.
- Protections: Layered safeguards like divergence fees, cooldowns, AI anomaly detection, Emergency Council, and 10% USD1 boost—avoiding naive synthetics like USDe.
- Compatibility: Aligned with Cosmos SDK 50.13 and 2025 upgrades, drawing from real-world lessons (e.g., no high-risk funding rates).
USTD’s Approach
- Yield Mechanics: Likely over-collateralized or funding-rate based (Ethena/USDe-style), automated but tied to external oracles and derivatives—prone to depegs in volatile conditions.
- Risks: Oracle depletion (no strong buffers mentioned), bear-market fragility, and added complexity without addressing USTC’s core issues. Forum discussions highlight concerns over copying without innovation.
Why MM3 Wins? MM3 is battle-tested against 2022’s lessons—self-sufficient, automated, and risk-mitigated. USTD introduces new vulnerabilities, potentially turning a revival into another depeg disaster. We need stability for the giant, not experiments that could shatter trust.
3. Governance and Community Interests: Collective vs. Individual
MM3’s DAO Constitution
A full framework with separation of powers (Assembly for legislation, Validators/Committees for execution, Emergency Council for judicial oversight). Includes user rights, anti-capture measures (AI Sybil detection, timelocks), and oracle refill funds. Everything is transparent, auditable, and community-owned—boosting governance turnout from ~20% to ≥50%. Features like Shuttle recovery for wLUNA and a 100-day repeg window prioritize collective recovery.
USTD’s Governance
Simple DAO setup, but geared toward individual holder yields. It may benefit small groups, yet forum critiques point to regulatory risks and depeg fears, with little emphasis on ecosystem-wide revival.
Why MM3 Wins? Terra Classic was built for grand DeFi, not isolated yields. MM3 ensures collective benefits, awakening the giant for all. USTD’s focus on personal gains could fragment us, turning shared potential into selfish pursuits.
4. Risks and Lessons from History: Avoid Repeating Mistakes
MM3’s Risk Matrix
- Depeg (25% prob., mitigated by dynamic minting and phases).
- Oracle depletion (40% prob., countered with yield refills and alerts).
- Lessons: Steers clear of synthetics like USDe, focusing on real anchors and self-sufficiency.
USTD’s Risks
Higher exposure to oracle failures, depegs, and regs—mirroring 2022 and 2025 USDe issues. Community threads show worries about “foolish copies” without true innovation.
Key Question to Ponder: Do we want Terra Classic as a lab for new stablecoins, or do we revive the real deal? MM3 offers organic, sustainable revival—collective over individual, giant over gimmicks.
Call to Action: Let’s Debate and Unite!
What do you think? Could USTD complement MM3, or should we prioritize USTC’s revival? Share your views—vote, comment, and help awaken the $40B giant! Check the full MM 3.2 proposal here ( #MM3 ) or GitHub. If you need more details like PROPOSAL.md, let me know—we’ll continue the steps together.
Note: let’s Make DEFI Great Again [ #MDGA ] , but real one($LUNC $USTC)!
#MM3 #TerraClassic #LUNC #USTC #MakeDeFiGreatAgain 
