From the past to the future: a smart legal alternative to more flexible stablecoins
Details: Launching Dynamic Algorithmic Assets (Stable-like Assets)
Proposed Currencies:
Asset pegged to the Russian Ruble (RUB)
Asset pegged to the Euro (EUR)
Asset pegged to the Chinese Yuan (CNY)
Note: It is not referred to as Stablecoins to avoid regulatory restrictions, but is called:
Adaptive Value Assets
Smart Peg Units
Experimentally Pegged Assets
Proposed Usage:
These assets are used within DeFi applications in the Terra Classic ecosystem.
Provides a price reference for national currencies, with limited volatility controlled algorithmically.
Benefits of Global Market Integration
By launching algorithmic assets pegged to the Russian Ruble, Euro, and Chinese Yuan, the Terra Classic network opens access to three global economic powers.
These assets can be used as a bridge for LUNC adoption in Russia, Europe, and China.
Enables users to transact and store value using a familiar currency reference.
This enhances real usage and expands the appeal of LUNC globally.
Legal classification and regulatory flexibility (smart legal innovation)
Given the increasing restrictions imposed on stablecoins by the EU, US, and others, this new model suggests avoiding the label 'Stablecoins'.
How does this model succeed?
These assets are marketed as not being regulatory stablecoins.
Instead, it is presented as algorithmic assets with controlled volatility.
The experience of the USTC collapse is leveraged as evidence that the new system is more resilient and not subject to the same regulatory classification.
It is prohibited from being classified as direct financial instruments (Fiat-Backed), keeping it within the decentralized framework.
Proposed Terms:
Adaptive Value Assets
Smart Peg Units
Experimentally Pegged Assets
Integration of USTC into the new system (optional)
A portion of the fees from these new assets can be periodically allocated to gradually burn USTC:
Gradually restores symbolic value to it.
Not offered as a stablecoin, but as a community-backed asset supported by the system.
Increases the system's cohesion and encourages USTC holders to support the new system.
Circuit Breaker Mechanism
Function:
If the value of any of the three assets decreases by 3% without legitimate cause:
• Transactions are temporarily halted.
• A technical team is formed for verification.
• Work resumes only with community voting.
Benefits:
Fortifying the network against fatal attacks and fluctuations.
Protecting users from sudden collapses.
Maintaining system stability autonomously.