Parameter Adjustment to Incentivize USTC Fee Payments for Organic Repeg Pressure via Oracle and Tax Mechanics
Proposal Type:
Parameter Change / Software Upgrade (if minor code tweak needed for biased oracle weighting or fee denom preference)
Background
Since the UST depeg in 2022, numerous repeg proposals have been discussed and voted on, including oracle integrations, market module reactivation, staking locks, fee burns allocations (e.g., 20-80% burns to pools), virtual liquidity limits, and more. Many have been viewed as too dangerous (risk of death spiral recurrence), too complex to execute safely, or ineffective without massive adoption.
Current Issue / Opportunity
Paying fees in LUNC is often the default and feels “cheaper”, make no application to USTC.
No new complex mechanism (e.g., mint/burn arbitrage, large pools, or interest rates) is needed—just tweak how fees are calculated or presented.
Proposed Solution
Adjust default gas prices for USTC to LegacyNewDecWithPrec(375, 5), that make 1 USTC roughly equal to 1 USTC.
Expected Outcomes
Shift majority of tx fees to USTC denom → increased USTC acquisition/buying.
Higher USTC on-chain activity → more burns via tax mechanism.
Gradual upward pressure on USTC price without risking full repeg mechanics.
If successful, could move USTC closer to peg organically, creating momentum for safer future steps.
Very low technical risk: Builds on existing Tax2Gas/multi-denom/oracle infrastructure.
Vote YES if you support testing this low-risk, market-driven approach to support USTC via fee incentives.
Vote NO or Abstain if you prefer status quo or different repeg strategies.
Feedback welcome—let’s refine before on-chain submission! #LUNC#USTC#TerraClassic
This draft keeps your core logic intact while making it proposal-ready (professional tone, safeguards, clear mechanics). You can copy-paste and tweak for Station or forums. If you want variations (e.g., more aggressive discount or specific numbers), let me know.
Every time I use a chain like BSC for example, or I want to send USDT from an exchange to a wallet, I pay a fee of around 1 USDT. Why not stablish a common 1 USDT fee for sending assets and some higher or percentage if transaction is higher than 1K usd worth of assets. That could pay higher, but smaller transaction would pay a standard 1 Usdt worth of lunc or ustc. That would increase burn, CP filling, OP filling, and then adjust after some 6 months try for example.
Standarize and over time, it will became the most common sense thing and widely accepted.
For other contracts ( claiming rewards, staking, others that are not sending assets) you could keep the actual percentage scheme.
I don’t think there are any developers in the community can implement your idea. I cannot see any major chances in 2 years. That why I suggest the proposal that seems to be the easiest implementation.
Already 2 weeks after my suggestions, I hope everyone in the community to help. It doesn’t matter whether you agree with my suggestions. You can your own recovery proposal. It is so disappoint that just no one in community agree, disagree or raising a different proposal to recover the USTC.
Seems it is just no one still active in this chain, but it should not be. many of you guys still holding billion of LUNC, you cannot leave the chain die out.
We need REAL-WORLD VALUE. Who’s gonna use tokens to make transactions with their money? If I wanted U.S. dollar I’ll go for USDC or USDT. If I wanted to invest I’ll go for BTC. If I wanted privacy I’ll go for ZEC,MONERO,VERGE and others. WHAT DO LUNC,USTC AND RELATED TOKENS OFFER ME? The moment we answer this question we’ve finally discovered a solution. Sorry if I sounded rude, I was just sharing my opinion to help make the TerraChain better.
Your name called ustc, but seems you are suggesting we need to give up USTC, and go for USDC instead? I agree with you on the point of USDC, it helps easier to onboard to this chain, but I do not agree with you about giving up USTC. What you are saying, is not different from what other chains did, but I really hope this chain has some features best than other chains. And the proposal here is petty soft, it is just encourage people use USTC as transactions fee, resulting burn less LUNC burn more USTC. I guess you don’t care the proposal, as you suggesting us to let it be and move on.
PS, i don’t mind you are rude, I just want the discussion constructive.