USTC Recovery Framework: Expanding Utility and Supporting Depeg Affected Holders


Summary of the upcoming signal proposal

The purpose of the upcoming signal proposal is to ask the community a simple question:
Does the community want development work to begin on a USTC recovery framework focused on depeg-affected holders, through the creation of a native USTC staking system?

If this signal proposal passes, it would then be followed by a series of technical and governance proposals to implement the system in a structured and controlled way.

Proposed implementation path after signal approval

1. Technical proposal for core system creation
This proposal would cover the creation of the main staking infrastructure, including:

  • a new USTC oracle pool
  • a distribution module for USTC rewards
  • parameter change capability for future reward adjustments
  • a parameter for instant / quick unstake functionality, but disabled initially
  • an USTC emission parameter, set to zero at launch

The idea is to build the full framework from the start, while keeping some functions disabled until the community decides otherwise through separate proposals.

2. Community Pool spend proposal
After the technical framework is implemented, a Community Pool spend proposal would be submitted so the approved USTC allocation can be transferred into the newly created USTC oracle pool.

3. Reward activation proposal
A following proposal would then be submitted to change the reward parameter from 0% to 10% APR, officially activating staking rewards.

4. Review period before emissions are considered

Both the one-time bootstrap mint and the ongoing daily emissions will only be considered after the completion of a 3-month review period.

After launch, the system would be observed for around 3 months to evaluate key metrics, especially:

  • total USTC staked
  • staking participation levels
  • reward behaviour
  • overall ecosystem response

Only after this review period would the community assess whether it is necessary to activate the USTC emissions parameter or whether the initial structure is already performing well enough without it.

Why this staged approach matters

This approach allows the community to move forward step by step, with clear control at every stage:

  • first approve the direction
  • then build the infrastructure
  • then fund it
  • then activate rewards
  • and only later review whether further emissions are needed

This keeps the process transparent, measurable, and fully governed by the community.


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