2/5. Terra Classic — Possible North. Where we are going or could go. Possible goals for the short, medium and long ter.

6 min readOct 30, 2022

“We face the opposite problem of most web3 layer one protocols: instead of having a huge treasure trove of tokens to incentivize adoption and 0 external users, we have hundreds of thousands of active users, but little room for additional token incentives… The strongest attractor for usability is our community”

“The main implementation will require a new genesis and rewrite of the marketplace and oracle modules, which will take some time.”

“Finally, for those on the outside looking in, the articles and stories you are reading about the dangers of LUNC are true. What we are doing is crazy. We are building a platform with a failed reputation, trying to solve a problem we did not create and restructuring a $10 billion debt that does not belong to us. One could say what we’re doing is insane.”

Edward Kim (1)

As Edward told us, we are facing a real madness. Trying to make the phoenix (that one day shone with splendor) rise from the ashes. It is not totally crazy, if we all work together with the same objective, it is possible.

Therefore, we would like to highlight the following for the future achievement of the chain:

· I). The creation of incentives for new companies and institutions (with volumes of fresh capital) to have a space in the ecosystem so that they can develop their market and business projects, thus generating new utility tokens within the chain.

· II). Do not solve in a linear way, a debt restructuring, which in itself does not belong to us. Only take it as something to be repaired in the short-medium term in a sustainable way for the whole ecosystem. Using part of the money obtained from genuine and solid investments for this purpose.

· III). Re-write the ecosystem and shape the generation of decentralized, autonomous and stable wealth.

Fundamental Bases

Since its inception, Terra provided a space focused on stablecoins linked to various fiat currencies. Thus strengthening an infrastructure of stablecoin payments and efficient decentralized finance to merchants and consumers. As stablecoins are linked to fiat currencies, the Terra Classic ecosystem became a kind of Digital Central Bank (a).

On the other hand, from the beginning of 2021 to the end of March 2021 the price of LUNA moved by 2721%. This was mainly due to the demand for UST which drove up its price. Where all this demand for UST was coming from, mainly from Mirror Protocol, which creates digital representations of real-world assets such as US stocks and ETFs, as well as Bitcoin and Ethereum (a).

From the above, we can deduce that one of Terra Classic’s greatest strengths is precisely to act as a Decentralized Asset Marketplace as was one of its most popular protocols of the chain, Mirror Protocol. On the other hand, it was a Decentralized Digital Bank that linked the entire cryptographic ecosystem with the real consumer and trading markets.

In order to give a sustained and more stable value to the ecosystem, it is necessary to retake these strengths of the recent past and orient them together on a larger scale, giving unity and real value to the entire ecosystem. Today it is also possible to further safeguard the entire chain, due to the experience acquired by developers and investors since the de-peg of USTC.

The implementation of a Decentralized Asset Market in Terra Classic can be used by entrepreneurs or established companies that can create and commercialize their own assets on the chain, together with other assets in the sector that arise from the community itself as synthetics and are linked to real or cryptographic assets. Thus, the value of the chain as a large Digital Bank of Decentralized Assets is once again being put into value.

As a historical analysis that is taken as a reference for this proposal, we highlight The Stock Exchanges that have been operating for a long time, since it appeared around 1710 in Japan (b). To provide volume and liquidity to all traders and end users. And thus generate a “rich and prosperous ecosystem”.

Re-Writing the Ecosystem

The Decentralized Market for Terra Classic Assets (MDATC) will be subdivided into other smaller markets according to a particular Category in a Market for Assets by Sector (MASTC) or in relation to the currency or stable base asset of use in a Market for Stable Assets (MAETC).

Thus we would have a DeFi market, an NFT market, a Dex market and a Developing Protocols market (similar to the one used in Polkadot) for financing rounds, etc., in short, an exclusive market for the different DApps of Terra Classic.

On the other hand, we would have a market for the stable DApps, such as USTC, EUTC, KRTC, PAXG, UPXAU, etc., which would also act as a Decentralized Digital Central Bank for all the Stable DApps supported by the chain.

It will also be possible to create an Index market ©. In this market, both indexes combining different assets and those DApss that have a native token with different assets as collateral or backing base, as ETFs of traditional markets, may be listed.

The potential of generating an Asset Market (Decentralized) is that we would be generating a known space for institutional investors or large capitals. A mechanism for the generation of wealth and a decentralized capital safeguard against possible global financial crises. Fresh money and considerable volume would be obtained. Generating greater nested utility in chain, both for large capitals and for users with little capital, in a market protected from governmental limitations or recurrent crises in totally decentralized exchanges without KYC.

An Open Marketplace for different scales of commercial and economic needs. This mechanism is already known by all users who have used the Mirror protocol. And it facilitates its use and adaptation by all Terra Classic users.

For this proposal to create and regulate different markets under the umbrella of a Decentralized Global Market to be viable, the mechanism mentioned by Tobias in his proposal of “partitioned groups” (3) will have to be implemented:

“To enable such a reality, we will have to implement a new blockchain function called “partitioned groups” that will allow “dapps” to dynamically create their own “nested equity partitions” within the Terra group by paying a fee based on LUNC…These new “commodity tokens” would use a fixed or dynamic price, measured in USTC, and could only be capitalized through LUNC and traded through USTC….” I firmly believe that the only viable option for recovery is to walk the “hard road”,… with new on-chain features intended to serve the “reserve currency” needs of a “value-driven” blockchain network backed by millions of users.”

Finally for greater usability of the overall Marketplace and its smaller markets a partnership with market charting platforms such as GoCharting (d), TradingView or other similar ones could be generated until in the future a proprietary ecosystem application can be developed.

Aleph Arun

Continue reading this proposal here — A path to bring value back to the Terra Classic ecosystem. Institutional investment and recovery of Lunac and UstC’s value without debt.