Luna Classic
Terra Classic Passes Crucial Proposal To Revive LUNC, USTC Price To $1 After Parity Upgrade
Terra Classic (LUNC) core developer team Joint L1 Task Force (L1TF) is set to work on a plan to bring TerraClassicUSD (USTC) to $1 after the v2.1.0 parity upgrade is approved by the Terra Classic community. After the completion of the CosmWasm parity upgrade on June 14, the L1TF will allocate a fraction of its budget to set up a USTC test environment.
The Terra Classic community has unanimously passed Proposal 11548 “USTC Test Environment” on June 7. The proposal, which seeks to create a test environment to evaluate conditions necessary for a successful USTC re-peg event, received overwhelming support with 90% votes in favour, while 10% voted to abstain. There were almost no “No” and “No with veto” votes, underscoring the community’s recognition of the importance of the USTC re-peg to revive LUNC and restore the utility of the Terra Classic blockchain.
The proposal was submitted a week ago by LuncBurnArmy (LBA), the L1 Team’s Project Manager, shortly after the release of the Agora text. 49 validators voted on the proposal, with an impressive 40 picking “Yes,” while the remaining nine abstained. Notably, no validator voted “No.” Major validators such as Allnodes and Orion showed support for the idea.
The test environment is to be developed using a small portion of the Q2 budget. This environment can be used by the L1 Team and other interested parties to evaluate USTC re-peg events.
One of the USTC re-peg ideas to be tested in the environment is the tax divergence protocol introduced by LUNC community member Redline Drifter. Redline Drifter noted that he is working with the team and the Terra Grant Foundation to address concerns from exchanges.
According to LBA, the L1 Team plans to focus primarily on USTC re-peg work for the year’s third quarter, which will depend on community consensus. The team aims to form a USTC working team and release a definite USTC re-peg roadmap in Q3.
In addition to the progress on the USTC re-peg, the prices of LUNC and USTC have seen significant jumps. The price of LUNC skyrocketed 44% today and over 110% over the past seven days, while USTC gained over 140% today and over 780% in the past seven days. The current trading price of LUNC is $0.0001, and USTC is trading at $0.01426.
One of the main contributors to the sudden rise of LUNC price and consequently that of the USTC stablecoin is the recent announcement by a metaverse venture called StarShip that it will incorporate LUNC into its ecosystem. StarShip will also burn 1.2% of the total amount of LUNC that it will receive as payment.
Despite the promising developments, the search for information on the implications of the parity upgrade in the Ethereum ecosystem was unsuccessful due to technical issues. Further investigation in this area would provide a more complete understanding of the situation.
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Bitcoin
Pennsylvania’s Bold Leap: A Bill to Position Bitcoin as a State Reserve Asset
Introduction:
In a groundbreaking move, the Commonwealth of Pennsylvania has introduced legislation titled the “Pennsylvania Bitcoin Strategic Reserve Act,” aiming to allocate a portion of the state’s financial reserves into Bitcoin. This initiative marks Pennsylvania as a potential trailblazer in the integration of digital assets into traditional state financial strategies, reflecting a broader trend of recognizing cryptocurrencies as viable stores of value.
The Bill’s Journey:
The bill was introduced by Republican State Representative Mike Cabell, who has long been an advocate for cryptocurrency. The legislation proposes that up to 10% of Pennsylvania’s state funds, which could amount to approximately $7 billion, be invested in Bitcoin. This move is intended as a hedge against inflation and a diversification from traditional reserve assets like bonds and cash.
Economic Rationale:
- Inflation Hedge: Advocates for the bill argue that Bitcoin’s limited supply could serve as an effective countermeasure against inflation, which traditional currencies frequently face.
- Financial Innovation: The introduction of Bitcoin into state reserves is seen as a step towards financial resilience and innovation, positioning Pennsylvania at the forefront of modern financial management practices.
- Portfolio Diversification: By including Bitcoin, Pennsylvania seeks to diversify its investment portfolio beyond conventional assets, potentially reducing risk and enhancing returns over time.
Political and Public Reaction:
- Bipartisan Support: The bill has garnered attention for its bipartisan support. Despite the polarized political climate, both Democrats and Republicans have shown interest in the potential benefits of integrating digital assets into state financial strategies.
- Public Sentiment on X: Posts on X (formerly known as Twitter) reflect a mix of excitement and skepticism. While some users applaud Pennsylvania for its progressive financial policy, others express concerns over the volatility and regulatory ambiguity surrounding cryptocurrencies.
- Federal Context: This state-level initiative comes at a time when the federal government is still grappling with how to regulate digital assets. Pennsylvania’s move could influence national discussions on the role of cryptocurrencies in public finance.
Potential Implications:
- Precedent Setting: If passed, Pennsylvania could set a precedent for other states, potentially encouraging a national shift towards recognizing cryptocurrencies in state financial planning.
- Market Impact: The legislation might boost Bitcoin’s market perception as a legitimate asset class, possibly influencing its price and adoption rate.
- Regulatory Clarity: The push for Bitcoin reserves might accelerate the need for clearer federal regulations concerning digital assets, given the significant public funds involved.
Challenges and Criticisms:
- Volatility: Critics point to Bitcoin’s price volatility as a significant risk for state funds.
- Security Concerns: Holding large amounts of Bitcoin requires robust cybersecurity measures to prevent theft or loss.
- Legal and Regulatory Hurdles: The lack of comprehensive federal guidelines on cryptocurrencies could complicate the implementation of such a policy.
Conclusion:
The Pennsylvania Bitcoin Strategic Reserve Act represents a bold experiment in state-level financial innovation. If enacted, it could redefine how states manage their reserves in the digital age, potentially influencing economic policies across the U.S. Whether this will lead to broader adoption or serve as a cautionary tale remains to be seen, but it undeniably places Pennsylvania on the map as a state willing to navigate the uncharted waters of digital finance.
The conversation around this bill continues to evolve, with economic experts, policy makers, and the public weighing in on its merits and potential pitfalls. As discussions progress, all eyes will be on Pennsylvania to see if Bitcoin can indeed become a cornerstone of state financial strategy.
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