Source from:

• https://validator.info/terra-classic/governance/12168
• https://common.xyz/terra-luna-classic-lunc/discussion/742732-proposal-requesting-coinmarketcap-to-remove-the-stablecoin-tags-from-ustc-srd-update

Proposal: Requesting CoinMarketCap to Remove the “Stablecoin” Tag’s from USTC & SRD Update

This proposal requests the Terra Classic community’s approval to formally ask CoinMarketCap (CMC) to remove the “Stablecoin” tags from USTC and SRD Update.

Rationale

The Markets in Crypto-Assets (MiCA) regulation is putting USTC in a difficult position, as some centralized exchanges (CEXs) are considering delisting USTC due to its past classification as a stablecoin. Although USTC no longer functions as a stablecoin, many CEXs rely on CMC’s classification when making listing decisions. Having the “Stablecoin” tags on CMC poses an unnecessary risk to USTC, as some exchanges may take actions to meet regulatory requirements, based on this outdated classification. While some platforms may ignore this tag, it is still a risk we should not take.

CMC’s Stance

CMC has confirmed that if we pass a governance proposal stating that the Terra Classic community wants the tags removed, they will follow our governance decision.

Proposal Goal

By approving this proposal, we will officially request CMC to remove the “Stablecoin,Algorithmic Stablecoin,USD Stablecoin” tag’s from USTC, ensuring that it is classified correctly and reducing the risk of unnecessary delistings.

In addition to the requested tag changes, we mandate that Allnodes update the description of TerraClassicUSD (USTC) on CoinMarketCap (CMC) to align with the current reality of USTC. https://coinmarketcap.com/currencies/terrausd/#About

The previous description misrepresents USTC as a stablecoin, which could lead to compliance issues under MiCA regulations and increase the risk of delisting from European exchanges.

To address this, we require Allnodes to submit and ensure the acceptance of a new description on SRD to CMC that reflects USTC’s current status .

The proposed updated description is as follows:

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About TerraClassicUSD (USTC)

TerraClassicUSD (USTC) was originally launched as an algorithmic stablecoin within the Terra ecosystem, designed to maintain a peg to the US dollar through an automated market-Module mechanism with LUNA (now LUNC). However, following the collapse of the Terra ecosystem in May 2022, the core stabilizing mechanism was disabled, and USTC lost its peg to the US dollar.

Since then, USTC has been a freely traded digital asset, with its price determined purely by market supply and demand. It no longer functions as a stablecoin, nor does it have an active peg-maintenance mechanism.

USTC remains an integral part of the Terra Classic ecosystem, where it continues to be used for various purposes, including DeFi applications , gas fees and trading. Unlike traditional fiat-backed assets, USTC’s value fluctuates based on market conditions and community participation.

The USTC and LUNC Relationship

USTC operates on the Terra Classic blockchain alongside LUNC, the network’s native tokens. Following significant changes to the ecosystem, USTC now exists as a free-floating digital asset. Community governance continues to explore potential new utilities for USTC within the Terra Classic network.

Where Can You Trade TerraClassicUSD (USTC)?

USTC is available on multiple exchanges, including both centralized and decentralized platforms. It can be acquired through trading pairs with other cryptocurrencies such as BTC, USDT, and LUNC.

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By implementing this change, we aim to reduce the risk of regulatory misinterpretation, ensure greater clarity for investors and exchanges, and improve the standing of USTC in the European and other market.

Voting Options

✅ Vote YES if you believe the tags should be removed from USTC & that the SRD should be updated.

❌ Vote NO if you believe the tags should remain and the SRD should not be updated.