Introduction
Since the collapse of the original UST in 2022, the Terra Classic community has never stopped searching for a credible solution to restore confidence, stability, and utility to the ecosystem.
The EUTC Plan proposes a new way forward — not by replicating the mistakes of the past, but by introducing a fully over-collateralized stablecoin (EUTC) that directly strengthens LUNC’s fundamentals.
This plan is not about quick fixes or unrealistic promises. It is about sustainability, transparency, and building long-term value for the Terra Classic blockchain.
What is EUTC?
EUTC is a euro-pegged stablecoin (1 EUTC = 1 €), fully backed by locked on-chain collateral.
This collateral comes primarily from LUNC and USTC, locked at a strict 150% over-collateralization ratio. This means that for every EUTC minted, there is always at least 1.5x its value secured in the collateral pool.
- No collateral = No mint.
- No mint = No inflation risk for LUNC holders.
Why is This Good for LUNC?
The EUTC Plan provides LUNC with real on-chain utility:
- LUNC becomes the mandatory collateral to mint EUTC.
- Every EUTC minted removes LUNC from circulation (locked in smart contracts).
- The more EUTC adoption grows, the more LUNC is locked, reducing supply and strengthening the ecosystem.
Additionally, once the Market Module is activated, a Tobin Tax on swaps will feed:
- 60% to the Oracle Pool (for staking rewards)
- 10% to the Community Pool
- 20% to Liquidity Pools
- 10% to the Collateral Pool
This new flow of value ensures long-term staking rewards without inflating LUNC.
What About the USTC Repeg?
The plan does not abandon USTC — it prepares the conditions for its safe and sustainable repeg.
By increasing the liquidity depth, building market confidence through EUTC, and locking USTC as part of the collateral system, the plan enables a gradual repeg of USTC — without artificial mechanisms or speculative traps.
Estimated repeg timeframe: 12 to 24 months — depending on trading volume and adoption.
A Community-Driven Future
The EUTC Plan is fully designed for and by the Terra Classic community.
- No central control.
- No external dependencies.
- Full transparency on-chain.
- Governance-driven evolution.
It’s not just a new stablecoin — it’s a long-term vision to strengthen LUNC, restore the USTC peg, and bring real utility back to Terra Classic.
Read the Full Whitepaper
For those who want to explore the technical details:
