{"id":"terraclassicusd-ustc","version":1,"language":"en","title":"TerraClassicUSD (USTC)","hidden":false,"content":"**TerraClassicUSD (USTC)** is a USD-pegged [stablecoin](https://iq.wiki/wiki/stablecoin), aiming to address the shortcomings of TerraUSD (UST). USTC builds off of the fundamentals of UST but introduces essential changes to present an upgraded version, exclusively operating on the [Terra](https://iq.wiki/wiki/terra) Classic [blockchain](https://iq.wiki/wiki/blockchain). [\\[1\\]](#cite-id-pf7zgb10f7n)  \n  \n# Overview  \n  \nTerraClassicUSD (USTC), formerly TerraUSD (UST), initially launched on the original [Terra](https://iq.wiki/wiki/terra) [blockchain](https://iq.wiki/wiki/blockchain) in 2020, is an algorithmic stablecoin designed for resilience and stability. USTC aims to become stable by diversifying its asset backing as UST lacked real dollar reserves and relied on complex algorithmic mechanisms involving [LUNA](https://iq.wiki/wiki/terra-luna) token burning and [minting](https://iq.wiki/wiki/minting). USTC resides on the Terra Classic blockchain, distinguishing it from UST which is associated with the original Terra blockchain. USTC has gained support from platforms like [Binance](https://iq.wiki/wiki/binance) and [KuCoin](https://iq.wiki/wiki/kucoin), making it accessible to users. [\\[1\\]](#cite-id-pf7zgb10f7n)[\\[2\\]](#cite-id-jyx6t4xnij)  \n$$widget0 [YOUTUBE@VID](UNmWUS3gqzI)$$  \n  \n# History  \n  \nTerra Classic, the original Terra blockchain version, launched in April 2019 by [Terraform](https://iq.wiki/wiki/terraforms) Labs (founded by [Do Kwon](https://iq.wiki/wiki/do-kwon) and [Daniel Shin](https://iq.wiki/wiki/daniel-shin)), aimed to create a global payment system supported by fiat-[pegged](https://iq.wiki/wiki/currency-peg) stablecoins secured by [Luna Classic (LUNC)](https://iq.wiki/wiki/luna-classic-lunc), a floating-rate [cryptocurrency](https://iq.wiki/wiki/cryptocurrency). Terra Classic employed [smart contracts](https://iq.wiki/wiki/smart-contract) for the minting and burning of various stablecoins in response to supply and demand fluctuations. LUNC served as collateral and a [governance token](https://iq.wiki/wiki/governance-tokens), stabilizing the price of these stablecoins. The Terra Classic network also supported [dApps](https://iq.wiki/wiki/decentralized-application) using USTC as a benchmark or medium of exchange. [\\[3\\]](#cite-id-kklyh3m6y9n)[\\[4\\]](#cite-id-032rg12atnki)  \n  \n## May 2022 Collapse  \n  \nIn May 2022, Terra Classic experienced a significant collapse when UST lost its peg to the US dollar. A substantial sell-off on major exchanges, triggered by a market crash and liquidity crisis, caused UST's devaluation. This initiated a detrimental feedback loop, compelling the protocol to mint trillions of [LUNC](https://iq.wiki/wiki/luna-classic-lunc) tokens to buy back UST, resulting in hyperinflation and LUNC devaluation. Legal issues led to the arrest of co-founder [Do Kwon](https://iq.wiki/wiki/do-kwon), while [Daniel Shin](https://iq.wiki/wiki/daniel-shin) avoided arrest in South Korea. [\\[5\\]](#cite-id-gj3mi6t63io)[\\[6\\]](#cite-id-tgbnrudzzgf)[\\[8\\]](#cite-id-g1i7bpkhjuc)  \n$$widget0 [YOUTUBE@VID](3KZY41SqaTI)$$  \n  \n## UST Becomes USTC  \n  \nWhen TerraUSD (UST) lost its USD peg, dropping to $0.68, this prompted a wave of UST liquidity withdrawals from the Anchor Protocol, followed by LUNA minting in an attempt to regain stability. However, these efforts led to hyperinflation, causing a severe devaluation of UST. To revive the project, co-founders initiated a community-led effort, culminating in the creation of a new blockchain, Terra Classic, and the rebranding of TerraUSD (UST) into TerraClassicUSD (USTC). This transition marked Terra 2.0's inception, focusing on [dApps](https://iq.wiki/wiki/decentralized-application) and community ownership, omitting algorithmic stablecoins, and adopting Terra (LUNA) as the sole cryptocurrency. [\\[2\\]](#cite-id-jyx6t4xnij)[\\[7\\]](#cite-id-nwld42bkvr)  \n  \n## Ceasing the Minting Process  \n  \nOn September 21, 2023, Terra Classic ceased [minting](https://iq.wiki/wiki/minting) TerraUSD (USTC), following a community vote that garnered 59% approval. TerraUSD's debacle caused a 99.9% drop in LUNA token prices and significant losses in Terra-based [DeFi](https://iq.wiki/wiki/defi) apps. The community's decision to halt minting is aimed at safeguarding users and external investors who are burning USTC to restore its peg. [\\[9\\]](#cite-id-dbpyq33u8di)[\\[10\\]](#cite-id-ss3a5ytkkel)  \n![TerraVotes.PNG](https://ipfs.everipedia.org/ipfs/QmQihvkgMMePSgboiGkvFUsJuKTMNCZWggTSHqctWetsKj)","summary":"TerraClassicUSD (USTC) is a USD-pegged stablecoin on the Terra Classic blockchain, aiming to improve stability over its predecessor, TerraUSD (UST).","categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"promoted":0,"tags":[{"id":"Stablecoins"}],"metadata":[{"id":"references","value":"[{\"id\":\"pf7zgb10f7n\",\"url\":\"https://bitkan.com/learn/what-is-terra-classic-usd-ustc-crypto-what-is-terra-classic-17889\",\"description\":\"Bitkan on USTC\",\"timestamp\":1699254420156},{\"id\":\"jyx6t4xnij\",\"url\":\"https://gncrypto.news/news/what-is-terraclassicusd-ustc-an-overview-of-the-project/\",\"description\":\"GNcrypto overview of USTC\",\"timestamp\":1699254521124},{\"id\":\"kklyh3m6y9n\",\"url\":\"https://cointelegraph.com/learn/terra-luna-beginners-guide-to-the-blockchain-for-stablecoins\",\"description\":\"Cointelegraph on Terra\",\"timestamp\":1699254574428},{\"id\":\"032rg12atnki\",\"url\":\"https://www.bsc.news/post/ustc-terras-new-stablecoin-worth-less-than-0-02#:~:text=The%20USTC%20is%20Terra's%20UST,Bitcoin%20back%20the%20algorithmic%20stablecoin.\",\"description\":\"BSC on USTC\",\"timestamp\":1699254604667},{\"id\":\"gj3mi6t63io\",\"url\":\"https://www.coindesk.com/learn/the-fall-of-terra-a-timeline-of-the-meteoric-rise-and-crash-of-ust-and-luna/\",\"description\":\"Coindesk on fall of UST\",\"timestamp\":1699254623393},{\"id\":\"tgbnrudzzgf\",\"url\":\"https://www.coindesk.com/markets/2022/05/15/the-collapse-of-terra-was-devastating-but-there-is-still-hope-for-crypto/\",\"description\":\"Coindesk on Crash\\n\",\"timestamp\":1699254711553},{\"id\":\"nwld42bkvr\",\"url\":\"https://docs.terra.money/migration/exchange-migration/\",\"description\":\"UST to USTC Docs\",\"timestamp\":1699254771983},{\"id\":\"g1i7bpkhjuc\",\"url\":\"https://www.bbc.com/news/business-65957999#:~:text=Do%20Kwon%2C%20the%20cryptocurrency%20boss,guilty%20of%20forging%20official%20documents.\",\"description\":\"BBC, Do Kwon arrest\",\"timestamp\":1699255008755},{\"id\":\"dbpyq33u8di\",\"url\":\"https://www.coindesk.com/tech/2023/09/25/terra-classic-community-votes-to-stop-ustc-minting-as-revival-efforts-continue/\",\"description\":\"Coindesk, Minting Halt\",\"timestamp\":1699255108339},{\"id\":\"ss3a5ytkkel\",\"url\":\"https://atomscan.com/terra/votes/11784\",\"description\":\"Atomscan Terra community votes\",\"timestamp\":1699255134467}]"},{"id":"website","value":"https://www.terra.money/"},{"id":"twitter_profile","value":"https://twitter.com/terra_money"},{"id":"linkedin_profile","value":"https://www.linkedin.com/company/terraform-labs/posts/?feedView=all&viewAsMember=true"},{"id":"telegram_profile","value":"https://t.me/TerraNetworkLobby"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/terrausd/"},{"id":"medium_profile","value":"https://medium.com/terra-money"},{"id":"commit-message","value":"made neutral"},{"id":"previous_cid","value":"QmTiQYn5MM9LYkkUdjod1bk6FqZgmeVVseyQ8ZNSmbdD2b"}],"user":{"id":"0xa817e9da10923C49C3eD3265Ec9aAb4FB2AF69FE"},"author":{"id":"0xa817e9da10923C49C3eD3265Ec9aAb4FB2AF69FE","profile":{"username":"Yeonwoo","avatar":""}},"media":[{"name":"UNmWUS3gqzI","id":"https://www.youtube.com/watch?v=UNmWUS3gqzI","size":"0","type":null,"source":"YOUTUBE"},{"name":"3KZY41SqaTI","id":"https://www.youtube.com/watch?v=3KZY41SqaTI","size":"0","type":null,"source":"YOUTUBE"},{"name":"TerraVotes.PNG","id":"QmQihvkgMMePSgboiGkvFUsJuKTMNCZWggTSHqctWetsKj","size":"0.03","type":"GALLERY","source":"IPFS_IMG"}],"views":34,"events":[{"title":"Launch Date","description":"Launch Date","type":"CREATED","date":"2020-09","link":"https://coinmarketcap.com/currencies/terrausd/#About"}],"ipfs":"QmTiQYn5MM9LYkkUdjod1bk6FqZgmeVVseyQ8ZNSmbdD2b","transactionHash":"0xbb26281053f65f69d0a18de84fc2e97f092dc46da05bb5ce1ef5bc5081bb0f3d","created":"2023-11-06T07:32:52.000Z","updated":"2023-12-14T03:52:32.174Z","images":[{"id":"QmQYCJ68hpJodDgmETt8Ki6SLAmf7sdLrGYpqbysGvtyVs","type":"image/jpeg, image/png"}],"linkedWikis":{"founders":["do-kwon","daniel-shin"],"blockchains":["terra"]}}