Official Proposal: MM 3.0

Proposals
5

:new_moon: MM 3.0 – An Organic Path to Peg Restoration and Protocol Revival

Dear LUNC Family,

It’s time we stop waiting for centralized solutions to fix what was once the most revolutionary DeFi ecosystem.
It’s time we take back control.

We present to you the final organic revival plan:
MM 3.0 – Modular Mechanism, a fully community-driven roadmap for restoring the $USTC peg to $1, rebuilding legacy protocols (Anchor, Mirror, Nexus, Astroport), and stabilizing the Terra Classic ecosystem under DAO governance.

This isn’t a patchwork fix. It’s an evolutionary design.
With real math, real code, and real hope.

:brain: Why MM 3.0?

  • :seedling: Organic: No centralized collateral. No artificial pegs. Only math and market signals.
  • :repeat_button: Modular: Step-by-step peg restoration from $0.02 to $1.00.
  • :gear: Autonomous: Self-adjusting mint/burn algorithm based on deviation, volume, and supply.
  • :shield: Resilient: Withstand volatility using VWMA oracles, yield vaults, and on-chain AI monitoring.
  • :abacus: Transparent: Everything is open-source, DAO-approved, and traceable via Terra Finder.

:coin: Step-Peg Model (Ladder to $1)

The peg will not jump to $1 overnight.
Instead, it will rise through organic, measurable steps over 24 months:

Phase Target Peg Timeline Action Focus
1 $0.02 Month 1 VWMA oracle activation, burn lock
2 $0.04 Month 3 Start USTC-BTC LP incentives
3 $0.08 Month 6 Reactivate Mirror, Anchor
4 $0.16 Month 9 Add liquidity pools, empower DAO
5 $0.32 Month 12 Burn 1T LUNC, adjust minting weights
6 $0.64 Month 18 Scale DAO treasury and TVL
7 $1.00 Month 24 Peg stabilization, yield lock (±5%)

Each step follows the same smart minting formula and builds permanent infrastructure for the next phase.

:dna: Core Mechanism: AutoMint Engine

Every mint event is calculated based on:

  • :chart_decreasing: Deviation from target peg
  • :counterclockwise_arrows_button: Current USTC supply
  • :money_with_wings: Daily transaction volume
func AutoMintUSTC(ctx sdk.Context, targetPeg sdk.Dec) error {
    currentPeg := getCurrentPeg(ctx)
    deviation := sdk.NewDec(1).Sub(currentPeg.Quo(targetPeg))
    if deviation.GT(sdk.NewDec(5).Quo(sdk.NewDec(100))) {
        return errors.New("Peg deviation too high")
    }
    totalSupply := bank.GetTotalSupply(ctx, "ustc")
    baseMint := totalSupply.Mul(sdk.NewDec(5).Quo(sdk.NewDec(1000))) // 0.5%
    adjustment := sdk.NewDec(1).Sub(deviation.Quo(sdk.NewDec(10)))
    dailyVolume := getDailyVolume(ctx)
    volumeFactor := sdk.NewDec(1).Add(dailyVolume.Quo(sdk.NewInt(10000000)))
    amount := baseMint.Mul(adjustment).Mul(volumeFactor).TruncateInt()
    if amount.GT(sdk.NewInt(200_000_000)) {
        amount = sdk.NewInt(200_000_000) // Cap
    }
    if currentPeg.GTE(sdk.NewDec(1)) {
        excessYield := calculateExcessYield(ctx)
        bank.SendCoins(ctx, "yield", "stabilization_fund", excessYield)
    }
    return bank.MintCoins(ctx, "mint", sdk.NewCoins(sdk.NewCoin("ustc", amount)))
}

After reaching $1, excess yield is locked in the stabilization_fund to maintain peg within ±5%.

:droplet: Liquidity and Tax Structure

0.5% Tax Proposal

Allocation Purpose
:fire: 70% Burn LUNC + USTC
:droplet: 20% DEX liquidity (USTC-BTC, etc.)
:balance_scale: 10% Legal & protocol recovery fund
  • LP Rewards: 2M USTC/month (initial 3 months), 10% APR
  • TVL Target: $200M
  • Slippage Goal: < 0.2%

:locked_with_key: Security & Stability

  • :white_check_mark: VWMA Oracle (on-chain)
  • :brain: AI Sybil detection (95%+ accuracy)
  • :no_entry: Divergence fees: 100% on extreme deviation
  • :police_car_light: Auto-pause triggers with multisig DAO

Audits:
Halborn (existing), Trail of Bits (recommended)

:ballot_box_with_ballot: Governance and DAO

  • :speech_balloon: Discussions: Discourse + X
  • :judge: Voting: DAO DAO module on Terra Station
  • :bar_chart: Dynamic quorum based on TVL and volume

We encourage LUNC holders to actively govern and monitor the revival — this is our chain, not theirs.

:balance_scale: Regulatory Compatibility

  • :white_check_mark: GENIUS Act (July 2025)
  • :dollar_banknote: 5% USD1 reserve (low-risk assets)
  • :bookmark_tabs: Monthly public reports on Terra Finder

:warning: Risk Dashboard

Risk Probability Impact Mitigation
USTC depeg 30% High VWMA, Dynamic Minting
Smart contract breach 20% High Audits, AI & Pause Triggers
DAO apathy 40% High On-chain voting + incentives
Centralized CEX issues 20% Medium Monitor volume, protection fund

:firecracker: Final Word

This proposal is not just a roadmap. It is a blueprint for rebirth.

We’ve seen collapse. We’ve seen centralization.
Now it’s time for something different — organic, autonomous, and truly decentralized.

The code is ready. The strategy is sound. The only missing piece…
is you.

Join us on this journey.

Vote now on Discourse.

“We’re not here to repeat the past. We’re here to rebuild the future.”

—

:rocket: Code the Future: Developer Challenge

Calling all blockchain coders!
MM 3.0 needs YOUR skills to bring Terra Classic back to life. We’re launching a global developer challenge to build the future of DeFi. Compete to code critical components like:

  • CosmWasm contracts for Anchor, Mirror, and Nexus
  • VWMA Oracle for on-chain price stability
  • AutoMint Engine for dynamic peg control
  • Security modules (AI Sybil detection, Auto-Pause)

What’s in it for you?

  • :money_with_wings: Competitive bounties: Submit your bid (timeline, cost, experience) and compete for contracts.
  • :globe_showing_europe_africa: Global impact: Be part of Web3’s biggest revival story.
  • :trophy: Bragging rights: Top coders get featured on Terra Finder and X.

How to join?
Drop your proposal on Discourse . Show us your skills, name your price, and let’s rebuild trust in Terra Classic together!

#MM3.0 #CodeTheFuture #TerraClassic
—
:hammer_and_wrench: MM 3.0
By the Community. For the Chain. Forever.

🧱 MM 3.0 vs MM 2.0 (No-Mint)