USTC • Classic Terra USD (post-collapse)
AlgorithmicSources: Terra Classic community updates
Current price $0.0242 (severely depegged from $1.00), Market cap $94.9M (down from $18.7B peak), $3.3M daily trading volume on Gate.com. Community implementing decentralized governance by remaining holders.
Sources: Terra Classic governance proposals
Community implementing aggressive burning mechanisms to reduce USTC supply from 9.4B to sustainable levels. Multiple burn initiatives active including transaction fees, community proposals, and validator burns.
Sources: Court filings, SEC announcements
Do Kwon extradition ongoing in Montenegro, Terraform Labs agreed to $4.47B SEC settlement. Criminal charges in U.S. and South Korea with some asset recovery for victims progressing.
Sources: Market analysis reports
May 2022 collapse: Peak $18.7B market cap (May 5, 2022) destroyed when Luna-UST peg broke. Algorithmic mint/burn model failed during leverage cascade, triggering $60B combined Luna/UST market destruction and broader crypto crash.
Sources: Terra Classic DAO documentation
Decentralized control with no central authority, community-run validators, token holder governance voting. Revival initiatives include supply reduction, utility development, and legal advocacy for asset recovery.
Sources: Regulatory case studies
Premier example of algorithmic stablecoin failure used by regulators globally. Demonstrates death spiral mechanics, confidence feedback loops, and systemic risks in experimental stablecoin models. Influenced subsequent regulation.
Classic Terra USD (post-collapse)
TerraClassicUSD uses algorithmic mechanisms to maintain price stability, relying on smart contracts and market forces rather than traditional collateral. This innovative approach offers scalability but may carry additional complexity and risk.