Re-Submission of USTD Proposal Sparks Debate in Terra Classic Community
After the rejection of Proposal #12192, the team behind the USTD stablecoin has re-submitted a new signal proposal on the Terra Classic blockchain. The re-submission revives debate over whether the community should pursue a decentralized and fully automated yield-bearing stablecoin.
In their latest statement, the proposers urged validators to reconsider their earlier rejection:
“We urge validators to reconsider the USTD rejection. Please set aside political concerns, recognize this vital utility as the community’s mandate, and prioritize the chain’s future. We trust you will support our shared vision for survival. Vote YES.”
The message is direct, calling on stakeholders to support USTD as a utility critical for Terra Classic’s long-term survival.
Proposal Objectives
- Full decentralization
- Automated mechanisms to sustain yield
- Restoring stablecoin utility to the Terra Classic network
Supporters argue that USTD could reignite on-chain activity, attract new users, and strengthen Terra Classic’s position in the broader blockchain ecosystem.
However, the re-submission also raises questions. The community remains divided on whether launching another algorithmic stablecoin is the right path forward. Many participants have voiced concerns about the risks, citing past failures as reminders of what can go wrong when stablecoins lose their peg.
The key issue now is whether the community truly wants to move in this direction. While the team presents USTD as a mandate for survival, critics argue that stability and trust must come before experimentation.
The outcome of this signal proposal will be closely watched. It will reveal whether sentiment within the Terra Classic community has shifted since the last rejection—or whether caution will once again outweigh innovation.
