We would like all of the Terra Classic Community for taking the time to review and vote on the
$USTD proposal. We would like to give an extra special thanks to those who supported it and pushed it across the socials.
While it's unfortunate that it didn't pass, we respect Terra Classic governance and the concerns/risks raised by the validator set.
We saw calls both in voting memos and from the community to build this as an L2 protocols here. We had specifically designed this to be an L1 protocol as we believed the Oracle reward depletion coupled with persistent downward price action of both
$LUNC and
$USTC to be the greatest risk Terra faces. Its not a hypothetical risk but a very real one, with a limited window to fix. At an L1 level the protocol had the most tangible benefit to Terra Classic and the potential to turn things around. The CP funded 100% of it but it also owned 100% of it and reaped 100% of the potential rewards.
While
$USTD can function if built on layer 2, the tokenomics would change drastically. The benefits would go to largely, if not entirely, to those who invested in the governance token/creating the protocol. As such, the impact of USTD is minimal to Terra Classic when compared to being built into the L1.
We deliberated heavily on this but respectfully we will decline to build this out on the Terra Classic layer 2 as we believe the state of the layer one and Oracle depletion is too great of a risk to building on this chain with a very tight timeline in which action can be taken. We hope that our refusal will force the validator set to acknowledge the risks and make changes to remedy the issues.
As such, it's with a heavy heart that we will depart from Terra Classic to find a new home for
$USTD but we wish the community every success and all the best for the future.
#LUNC #USTD #USTC #JURIS $LUNC $USTC $USTD $JURIS