Classic DEX Development Proposal Enters Voting Stage on Terra Classic
A proposal to develop Classic DEX on the Terra Classic blockchain has officially entered the governance voting stage. If approved by the community, Boosty Labs will be responsible for building and delivering the decentralized exchange according to the outlined specifications.
Classic DEX is designed as a community owned decentralized exchange built directly on Terra Classic, with the primary goal of generating real trading activity while permanently reducing the supply of LUNC and USTC through an on chain burn mechanism.
What Is Classic DEX
Classic DEX is a non KYC decentralized exchange that supports both spot trading and perpetual futures. The platform is built natively on Terra Classic and settles all trades using native LUNC or USTC rather than wrapped or external assets.
Once launched, full operational control of Classic DEX will be transferred to the Terra Classic community through Agora governance. There are no private owners, no token pre mines, and no exclusive profit sharing arrangements.
Core Objective
The core objective of Classic DEX is to create a sustainable and self reinforcing economic model for the Terra Classic ecosystem.
- Increased trading activity generates higher fee revenue
- Trading fees are used to burn LUNC and USTC
- Reduced supply supports long term ecosystem value
- Improved incentives encourage continued trading activity
This approach focuses on utility and volume driven growth rather than inflation or new token emissions.
Key Features Explained
Multi Chain Liquidity With Native Settlement
Classic DEX aggregates liquidity from major blockchain ecosystems including Ethereum, BSC, Polygon, and Solana through integrations with 1inch and Jupiter. Although liquidity is sourced externally, all trades are settled back into native LUNC or USTC on the Terra Classic blockchain.
Spot and Perpetual Trading
The platform supports both traditional spot trading and leveraged perpetual futures. Integrated systems handle funding rates, margin requirements, and automatic liquidations, providing functionality similar to professional trading platforms.
Dual Burn Engine Fee Model
Trading fees are distributed evenly across four predefined allocations.
- Twenty five percent is used to buy and burn LUNC
- Twenty five percent is used to buy and burn USTC
- Twenty five percent rewards liquidity providers
- Twenty five percent funds trader incentives and referrals
All burns are permanent and fully verifiable on chain.
LUNC and USTC Only Collateral
Only LUNC and USTC can be used as collateral on Classic DEX. This design ensures that trading activity directly supports the Terra Classic ecosystem and avoids value dilution from external assets.
Incentives and Reward Mechanisms
Trader Cashback System
Traders receive cashback rewards based on how they utilize LUNC or USTC on the platform. Higher incentives are provided for USTC usage, with additional rewards available for users who lock USTC for defined periods.
No new tokens are minted. All rewards are sourced exclusively from trading fees.
USTC Parking Modes
- Flexible mode with a short withdrawal delay and lower rewards
- Twenty one day locked mode offering the highest reward rate
Referral Program
Users who refer new traders earn ten percent of their referral’s trading fees. Additional bonuses apply when referred users lock USTC for the longer parking period.
Liquidity and Price Quality
Classic DEX uses an advanced liquidity routing system that evaluates multiple sources before executing a trade.
- Native order books
- Liquidity pools
- Professional market makers
- 1inch for EVM based chains
- Jupiter for Solana
The system automatically selects the best available price, applies slippage protection, and ensures all settlements remain in LUNC or USTC.
Technology Overview
Classic DEX is built using Cosmos SDK and Tendermint, with backend development in Go and supporting smart contracts in CosmWasm. The frontend is developed with React and integrates TradingView charts.
Wallet support includes Keplr and Leap. Infrastructure deployment utilizes Docker, Kubernetes, and Terraform, supported by a full monitoring and analytics stack.
Governance and Transparency
The proposal specifies no team pre mines and no hidden profit mechanisms. All source code is open source, and full ownership of the platform is intended to be transferred to the community.
Governance decisions are managed through Agora, with regular public development updates throughout the build process.
Development Timeline
The proposed development timeline is six months.
- Core DEX and spot trading functionality
- Fee distribution and burn engine implementation
- Perpetual futures and liquidation systems
- Frontend trading interface
- Multi chain liquidity integrations
- Final testing and mainnet launch
Development Team
If the proposal is approved, Boosty Labs will be responsible for building Classic DEX. The team consists of senior Cosmos SDK engineers, frontend and UX designers, DevOps and QA specialists, and experienced project management personnel.
Budget Summary
The total proposed budget is two hundred thirty five thousand dollars, paid entirely in LUNC. The LUNC amount is calculated using fair market pricing, with transparent adjustments if significant price movements occur.
Post launch maintenance is expected to be funded through DEX trading fees rather than additional community funding.
Summary
Classic DEX is designed to be community controlled, fee driven rather than inflation based, and focused on permanently reducing the supply of LUNC and USTC. If approved by governance, the project aims to transform trading activity into long term value for the Terra Classic ecosystem.
