Terra Classic USD (USTC) is the decentralized and algorithmic stablecoin of the Terra blockchain. Its value is pegged 1:1 to the US dollar through the minting/burning mechanism of LUNC tokens. To issue 1 Terra Classic USD, you need to burn 1 LUNC reserve asset and to burn 1 Terra Classic USD, a dollar worth of LUNC is minted. Terra achieves price stability by algorithmically adjusting its supply according to fluctuations in demand for its USTC.
