### What is TerraClassicUSD?

TerraClassicUSD (USTC) is a decentralized algorithmic stablecoin pegged to the US dollar, operating on the Terra Classic blockchain. It was originally launched as TerraUSD (UST) in 2020 and rebranded after the 2022 collapse of the Terra ecosystem.

### How does TerraClassicUSD work?

TerraClassicUSD functions through an algorithmic stability mechanism known as "mint and burn," which involves its associated native asset, Luna Classic (LUNC). The Terra Classic blockchain uses a Proof-of-Stake consensus mechanism, specifically the Tendermint algorithm. Validators on the network stake LUNC to validate transactions, contributing to the blockchain's security and efficiency. The price stability of USTC is maintained by adjusting the supply through minting and burning LUNC.

### What are the potential use cases for TerraClassicUSD?

USTC is used across various domains, primarily in the following ways:
- As a medium of exchange in payment systems and decentralized applications.
- For earning interest through decentralized finance (DeFi) platforms like Anchor Protocol.
- Facilitating cross-chain transactions due to its interoperability, making it suitable for financial services and remittances.
- Utilised in the creation and trading of synthetic assets on platforms like Mirror Protocol.

### What is the history of TerraClassicUSD?

TerraClassicUSD was launched in September 2020 on the Terra Classic blockchain by Terraform Labs, founded by Do Kwon and Daniel Shin. Initially branded as TerraUSD (UST), the project aimed to establish a global payment system using algorithmic stablecoins. Following the 2022 collapse of the Terra ecosystem, UST was rebranded to TerraClassicUSD (USTC). Despite challenges, USTC has significantly influenced the DeFi space by providing a scalable stablecoin solution.

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