USTC Repeg Plan Goes Live: How USTR and UST1 Will Help Restore Stability

The new repeg plan for USTC has officially started for the Terra Classic community. It introduces two new tokens from Ceramic called USTR and UST1. Both are created to help bring stability back to the Terra Classic ecosystem.

Currently, just under 22 million USTC have been pre registered for the CMM swap. This allows USTC holders to deposit their tokens and get USTR at a 1 to 1 rate.

How USTR and UST1 Help Repeg USTC

The new plan introduces three main tokens: USTR, DISP, and UST1. Each has a specific purpose that helps rebuild the system in a safe and sustainable way.

USTR The Transition Token

USTR is a temporary token that helps collect old USTC and turn it into reserves for a new, more stable system.

Here is how it works:

• USTC holders can swap their tokens for USTR during a 100 day event.
• The swap rate starts at 1 USTC = 1 USTR and slowly changes to 2 USTC to 1 USTR, meaning early users get better value.
• A referral program gives both referrers and new users a 10 percent USTR bonus.
• All USTC collected from the swap is stored in a collateral pool, which will later be used to back the new stablecoin UST1.

In short, USTR gathers USTC and helps build the base reserves for the new stablecoin system.

DISP The Governance Token

DISP gives the community voting power and helps fund the system.

DISP will be sold after the USTR swap through a bonding curve model where its price increases as more people buy. The money raised from selling DISP goes into the Collateral Market Mechanism (CMM), which acts as a decentralized treasury.

DISP holders can vote on key decisions such as:

• How the collateral is used
• Changes to system policies
• Elections for board members who manage the CMM

This design ensures the community has control over how the system runs and prevents any single group from taking over.

UST1 The New Stablecoin

After the liquidity and governance parts are complete, the new stablecoin UST1 will launch. UST1 replaces USTC as the main stable asset in the Terra Classic network.

Key features:

• Over collateralized and backed by real assets such as BTC, ETH, BNB, and USDT.
• Community governed through DISP stakers and elected members.
• Stabilized automatically by smart contracts that use price oracles to adjust collateral when markets change.

How it keeps stability:

• The CMM only creates new UST1 when there is enough collateral in reserve.
• If reserves are too low, no new UST1 is created until reserves recover.
• The system rewards stakers and burns some tokens to help control inflation.
• The system can also buy and burn LUNC to support both UST1 and the Terra Classic network.

The Final Goal A Fully Stable System

Here is the process in order:

1. People swap USTC for USTR to build the first collateral pool.
2. DISP is sold to fund the system and give governance power to the community.
3. UST1 launches as a new stablecoin backed by real assets.
4. The CMM manages reserves automatically for long term stability.
5. UST1 reaches and maintains the 1 dollar value.

In Simple Terms

USTR collects old USTC and builds the new reserves.

DISP gives the community control and funding power.

UST1 becomes the new stablecoin backed by real assets and designed to stay at 1 dollar.

Together, USTR, DISP, and UST1 replace the old algorithm based model with a collateral backed and community controlled system. This is a major step toward bringing back stability and trust to Terra Classic and the USTC ecosystem.