The Terra Classic (LUNC) community has announced the new Terra Classic Market Module 2.0 (mm 2.0). This version stands out in the mint-free version. The new module will make a major difference in the terrasic ecosystem without minting money.
In the newer version, mint can be run with multi-layer limits. These limits include SDR-based, PRP-limits, and daily mint restrictions based on burn history. These changes are intended to reduce the risk of inflation. The main features of MM version 2.0 are as follows:
- Ready to Use: The MarketPlace module is ready to Use.
- Swap Fee (0.35%): Half is burned and half is sent to the Oracle pool.
- New Mint Limit: You can cast up to 80% of the rank burned in the last 30 days (up to 100k SDR).
This is not a “repetition” suggestion. In other words, there are no attempts to bring USTC back to $1. USTC will no longer be treated as a stable asset. There are no new rank mints in the swap. Instead, a pre-funded pool will be used. This approach replaces the classic “mint and burn” mechanism.
There are many security measures in place, but disappointment can occur if the impact the community expects too high from this mechanism.
With the new clearing system, the system works as follows:
- USTC – LUNC Exchange: Users provide USTC and receive LUNC from the pool.
- LUNC – USTC Exchange: Users provide LUNCs and receive USTCs from the pool.
Half of the 0.35% fee charged in each swap transaction is burned, and the other half is transferred to the Oracle pool. Swaps that are concentrated solely in the USTC-LUNC direction can lead to depletion of the pool and below the expected rank burn rate. On the other hand, this could accelerate USTC burns.
*This is not investment advice.
