In recent days, there has been active discussion about the new idea of USTD within the Luna Classic community. While innovation is important for the revival of the blockchain, it is equally important for the community to remain critical and carefully evaluate proposals that require large amounts of funding.
Luna Classic is a governance-driven and democratic blockchain, meaning proposals must be examined from both supportive and opposing perspectives. Arguments and debates are a natural part of this process and are essential for healthy growth. From a our perspective, raising concerns about USTD provides balance and helps ensure decisions are made responsibly.
Key Questions About the USTD Proposal
We want raise several important questions that need clear answers before moving forward:
1. Project continuity – What happens if development stops midway through, especially since funding is planned for each stage? For example, if the project halts at stage two, where does accountability lie?
2. Timeline risks – What if the development takes much longer than expected?
3. Failure and recovery – If the project fails, what measures are in place for recovery?
4. Adoption challenges – How will USTD be introduced as the stablecoin of Luna Classic, especially since exchanges currently hold USTC? Will exchanges support this shift?
5. Market relevance – Is a new stablecoin worth the risk, considering that only USDT and USDC dominate the market while many other stablecoins failed to gain adoption?
6. Impact on Luna Classic – Can USTD truly help Luna Classic if the burn mechanism only applies to USTC? Since USTD is not a re-peg of USTC but a reinvention, how does it align with the original goal?
7. Marketing strategy – What is the concrete plan to promote USTD after development is completed?
8. Binance support – Binance has been the biggest contributor to LUNC burns and holds significant amounts of USTC. If USTD replaces USTC as the stablecoin, is there a risk that Binance may reduce or withdraw its support for Luna Classic?
The Importance of Calculated Risk
Some argue that taking risks is necessary to revive LUNC. However, risk without calculation is reckless. While the technical vision for USTD may be strong, the community must also weigh the financial, strategic, and governance implications.
Luna Classic is a community-led project made up of people from diverse backgrounds. Any use of funds from the community pool must be approached with full accountability. The goal is revival, but the wrong step could make the situation worse.
This perspective is not intended as fear, uncertainty, or doubt (FUD). It is about ensuring that the community makes informed decisions. Ultimately, governance will determine the path forward, and every voice in the community matters.
Many people will argue whether a legal team could handle these risks. However, we all know how time-consuming and expensive legal battles can be, which adds another layer of concern.
