Rethinking the Future of Terra Classic: From Ed Kim’s Vision to USTD and Beyond

A call to revisit Ed Kim’s emergency whitepaper in light of recent developments

Whitepaper here: Luna Classic Whitepaper

After the historic collapse of Terra Classic in May 2022, the community turned to leadership and structure to rebuild. Ed Kim, a prominent researcher and core contributor, released a whitepaper titled Emergency Management and Recovery of Luna Classic, providing a foundational roadmap for recovery. More than two years later, it’s time to revisit that plan—both to recognize how far we’ve come and to redefine our path forward.

The Original Vision: Emergency Measures & Governance

Ed Kim’s whitepaper outlined a three-phase strategy:

1. Phase 1: Emergency Multisig & TFL Detachment
   • Removal of centralized TerraForm Labs authority.
   • Establishment of the L1 Joint Task Force (L1JTF) for infrastructure maintenance.
2. Phase 2: Community-Owned Governance
   • Encouraging transparency, on-chain voting, and funding through proposals.
   • Formation of working groups and open-source development.
3. Phase 3: Long-Term Utility Plan
   • Focused on building real use cases through dApps, stablecoins, and IBC integrations.

While much of Phase 1 and 2 has been implemented, the roadmap for Phase 3 remains uncertain. The challenge now lies not in recovering what was lost—but in defining what Terra Classic should become.

What Has Been Achieved

✅ Governance Decentralization: Community-led proposals now define the future of the chain, with CommonWealth and Terra Station enabling transparent participation.

✅ Stable Infrastructure: The L1JTF and other independent developer groups have handled core updates reliably, preventing major network disruptions.

✅ Cosmos SDK Upgrade Proposal: A major upgrade to SDK 0.50.13 has been drafted see proposal, enabling new module compatibility and long-term development.

✅ DEX Expansion: Three decentralized exchanges—Garuda-Defi, Terraport, and Terraswap—are now fully integrated, offering DeFi options for LUNC, USTC, and project tokens.

✅ Upcoming dApps: Juris Protocol, a promising legal-tech Web3 application, is expected by end of year.

What Did Not Go As Planned

❌ EUTC Plan Rejected: Despite initial momentum, the community rejected a lot of repeg plan proposals (USTC, USTY, EUTC, staking solutions,…

❌ Lack of Consensus on Repeg Strategy: While USTC remains the emotional and symbolic center of Terra Classic’s collapse, there is still no clear consensus on how or whether to repeg it.

What’s Emerging Now

• USTD Proposal (UST Protocol): A new community-led initiative proposes launching a decentralized stablecoin named USTD. The whitepaper outlines a reserve-backed model with clear mint/burn logic and collateral strategy.
• Community Research Initiatives: Think tanks and independent groups have begun working on design patterns and economics for Terra Classic’s Layer 2 evolution, governance UX, and cross-chain liquidity.

Time to Redefine a Unified Direction

The Terra Classic community has rebuilt a great deal of its foundation—but without a renewed vision, we risk stagnation. Revisiting Ed Kim’s whitepaper should not be about nostalgia. It’s about realigning the community behind a long-term, credible plan for economic utility, dApp support, and interoperability.

Whether we adopt USTD, revamp USTC, or propose a third path, the time to coordinate is now.

What Can You Do?

• 🗳️ Read Proposals and follow new dev updates from teams like Orbit Labs, BLV Labs and Antier Solutions.
• 🧵 Join community forums and shape discussions around governance and stability.
• 💡 Share your own ideas or research in the “Open Research” section of LUNCToken.org through writing articles.

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