Official Proposal: MM 3.0

Proposals
7

UPDATE For Proposal: MM 3.0 — The Organic Comeback of Terra Classic

Category: Governance

Tags: #MM3 #USTC_Repeg #DAO #TruthOnChain #Revival #DeFi #Cosmos_SDK

Date: August 18, 2025

Start Date: wSeptember 1-15, 2025

Submitted by: Terra Classic DAO Community

Our Moment

Terra Classic, once a $40B DeFi giant with protocols like Anchor (savings), Astroport (AMM), Mirror (synthetics), Prism (yield), Nexus (staking), and Terraswap (swap), fell in 2022 due to insider betrayal—exposed by on-chain data on X. MM 3.0 is our rebellion: restore USTC peg to $1.00, revive legacy protocols as fully decentralized with DAO ownership, and build a self-sustaining ecosystem. No centralized control—just blockchain truth and community power. Ownership of all revived protocols (like Prism and Nexus) will transfer to DAO via on-chain votes, ensuring true decentralization without family or corporate ties.

Why MM 3.0 Stands Apart

  • Organic: Math-driven, DAO-governed, no centralized reserves—just community-owned protocols.
  • Modular: Peg climb from $0.01 to $1.00 over 24 months, with DAO votes for adjustments.
  • Adaptive: Fuzzy mint/burn adjusts to deviation, supply, and volume, enhanced by AI Sybil detection.
  • Resilient: Dual VWMA oracles, auto-pause on breaches, and robust security.
  • Transparent: On-chain execution, traceable on Terra explorer: [link to explorer].

The Truth of 2022

The chain doesn’t lie. On-chain analysis on X shows wallets tied to insiders who tanked USTC. They’re still profiting while we rebuild. MM 3.0 counters with public accountability, community verification, and threat exposure, ensuring no centralized entities hold power.

Reviving Our Roots

MM 3.0 revives Anchor, Mirror, Astroport, Nexus, and Prism organically, integrating historical strengths as fully decentralized protocols owned by DAO:

  • Payments Revival: Develop a new decentralized payment protocol (TerraPay DAO) inspired by Chai/Memepay functionality, fully owned and governed by DAO, integrated with Terraswap/Astroport for LP butterfly effect—ownership transferred to DAO post-revival.
  • Shuttle Bridge: Upgrade unidirectional Terra-to-Ethereum/BSC bridge to bidirectional (DAO vote), recovering wLUNA and cross-chain assets. Use WrappedToken contracts, fee max($1, 0.1%), add tokens via Deploy ShuttleVault and cw20—full DAO ownership to avoid centralization.
  • Mirror Synthetics: Revive mAssets (mAAPL/mTSLA/mAMZN) and ETFs (mQQQ/mIAU) with internal oracle support (150% collateral, 24/7 trading), reducing friction compared to Synthetix (750%). Ethereum integration via Shuttle—DAO owns all contracts.
  • Prism Yield: Revive for yield optimization, fully decentralized with DAO governance.
  • Nexus Staking: Revive for staking positions, integrated with Shuttle for cross-chain—ownership to DAO for true community control.
  • Code Upgrades: Patch original contracts, audited by Trail of Bits/Halborn.
  • Liquidity Pump: Phase USTC-BTC pools, driven by on-chain data/DAO votes.
  • Cosmos Link: Leverage Cosmos SDK/IBC for interoperability, all contracts open. Use Cosmos SDK’s module manager for staking, governance, and oracle modules.

Locking Down Security

MM 3.0 is fortress-like:

  • Oracles: Primary reliance on internal Terra Classic oracle, upgraded with 200+ validators (min 1M LUNC stake), AI Sybil detection (95%+ accuracy), and 7-day VWMA (VWMA_t = Σ(P_i × V_i) / Σ(V_i)) using on-chain liquidity pool data. Band/Chainlink as secondary, formalistic layer with 0% weight if deviation >3%.
  • Sybil Defense: AI flags trades, alerts on X.
  • Auto-Pause: Freezes on major breaches (>50% deviation), on-chain triggered.
  • Deviation Fees: 100% on >5% swings, to DAO treasury, logged.
  • Audits: Trail of Bits/Halborn verify, results public.

Hybrid Peg Plan

Formula: USTC_peg = [(70% BTC_res × BTC_price) + (25% LUNC_res × LUNC_price) + (5% USD1_res × 1)] ÷ USTC_supply

  • Weights: 70% Bitcoin, 25% LUNC, 5% USD1 (Trump initiative for independence; DAO vote to switch to DAI by Feb 2029 if political risks).
  • Execution: Cosmos SDK market module, reserves public on [link to explorer].

Stabilizing the Peg

func AutoYieldFromDeviation(ctx sdk.Context, deviation sdk.Dec) error { if deviation.Abs().LTE(sdk.NewDec(0.05)) { return nil } investAmount := deviation.Sub(sdk.NewDec(0.05)).Abs().Mul(treasuryPool) stakeToPools(ctx, investAmount) logOnChain(ctx, investAmount) // Tracked publicly return nil }

Roadmap to $1.00

Phase Target Peg Timeline Core Actions
0 $0.01 → $0.02 Sep 1-15, 2025 VWMA activation, oracle test
1 $0.04 Dec 1, 2025 LP incentives, Shuttle live
2 $0.08 Mar 1, 2026 Mirror/Anchor recap
3 $0.16 Jun 1, 2026 Expand pools, DAO treasury
4 $0.32 Sep 1, 2026 Burn 1T LUNC
5 $0.64 Mar 1, 2027 TVL $200M, tighten limits
6 $1.00 Sep 1, 2027 Yield lock ±5%

Real-World Proof (Hallswap, Aug 5, 2025)

  • Swap: 100,000 LUNC → ~441.53 USTC
  • Fees:
    • Burn Tax: 0.5% = 500 LUNC
    • Network Fee: ~17.42 LUNC
  • Received: ~439.32 USTC
  • Status: Oracle/peg live, verified on-chain.

Mint Allocation

  • 40% Stabilization: Buybacks/peg defense.
  • 30% Liquidity Pools: USTC-BTC, USTC-USD1 (DAI backup).
  • 20% Protocol Recap: Buyback Mirror/Anchor/Nexus/Astroport/Prism/TerraPay DAO assets for butterfly effect.
  • 10% Justice Recovery Fund: Transparent on-chain wallet ([link to wallet]). Funds recovery (wLUNA via Shuttle), upgrades; DAO-approved spends, audit-tracked.
  • 5% Staking Rewards: Incentivize validator participation.

Asset Recovery with Historical Integration

New mints buy back legacy assets:

  • Mirror synthetics (mAAPL/mTSLA, internal oracle, 150% collateral, 24/7 trading).
  • Anchor collateral pools.
  • Nexus staking.
  • Astroport/Terraswap liquidity pairs.
  • Prism yield.
  • wLUNA on Ethereum via Shuttle bridge (bidirectional, whitelisted assets, fee max($1, 0.1%)).
  • TerraPay DAO (new decentralized payment protocol replacing Chai/Memepay, DAO-owned).

Recovered value fuels stabilization and LP, creating a butterfly effect for TVL growth.

Fees

  • 0.5% Economic Tax: Burn, liquidity, legal/dev fund.
  • 1.2% Network Fee: Infrastructure, clear messaging.

Governance & Security

  • Open Voting: DAO DAO/Terra Station, 40% quorum, votes on-chain ([link to DAO]).
  • Sybil Defense: AI (95%+), flags on X.
  • Auto-Pause: >50% deviation, DAO-reviewed.
  • Treasury: 7/11 multi-sig, 4/7 emergency.
  • Community: X/Discourse debate, code public ([link to GitHub]).
  • Risk Management: Real-time dashboard, CEX impact monitoring.

Our Stand

MM 3.0 is our rebellion against insiders. We revive a DeFi titan with $1B+ daily volume, fully decentralized under DAO ownership. The chain scales to pre-2022 levels, no dependency. Code is ready—your action is needed.

By Community. For Chain. Forever.

  • :white_check_mark: Code it.
  • :white_check_mark: Audit it.
  • :white_check_mark: Launch Sep 1, 2025.
  • :white_check_mark: Shuttle bidirectional for wLUNA recovery.
  • :white_check_mark: Mirror with internal oracle for 24/7 synthetics.
  • :white_check_mark: TerraPay DAO for decentralized payments revival.
  • :rocket: Terra Classic rises.