TerraClassicUSD (USTC) is a decentralized, algorithmic stablecoin issued on the Terra Classic blockchain, designed to be pegged to the US dollar. It was formerly known as TerraUSD (UST) stablecoin and was issued on the old Terra blockchain, which rebranded to Terra Classic after the stablecoin's de-pegging from the USD in May 2022.
The old Terra chain was renamed Terra Classic, while the current Terra blockchain, or Terra 2.0, moved beyond stablecoins to support Web 3.0 and decentralized applications (dApps). Meanwhile, the Terra Classic network supports TerraClassicUSD (USTC), using LUNA Classic (LUNC) for price stability.
Terra Classic blockchain uses the LUNC crypto to ensure the price stability of the USTC stablecoin. As of August 2022, however, due to the extremely high circulating supply of LUNC in the crypto market, the current price of TerraClassicUSD remains de-pegged from the US dollar, well below the $1 value.
The Terra Classic community has been burning LUNC crypto to reduce its circulating supply in an attempt to restore the USD peg for the USTC coin. Although, from a total supply of more than 6.9 trillion, the circulating supply has only reduced to under 6.6 trillion by August 2022.