/biz/ - Business & Finance

>>51548768
>specifies NEW algorithmic stable coins

I don’t believe it does, it even suggests that current stable coins used for payment which are backed by USD will be under scrutiny.

>An ECS is currently defined in the draft as a stablecoin “in which its originator has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.” This new definition of an ECS points directly at the invention of Terra Luna by Do Kwon, where the Terra (UST) stablecoin was supported by a token called Luna (LUNA). If UST ever fell below the value of a dollar, a person could convert UST to LUNA at a 1:1 ratio and in the process, this would help UST regain its peg against the U.S. dollar

The entire utility that was so bullish for me seems to be getting undercut if this passes. Though I believe lunc will still perform well for me personally I’m not so sure about and eventual $1 event happening anymore. I’m open to being proven wrong as well, in fact I hope I am. Picrel is for kek