Terra Classic

TerraClassicUSD

Ceramics' USTC Vampire Repeg of Value is built around a simple principle: USTC’s recovery cannot depend on transaction taxes. Not because taxes are necessarily a bad thing, but because they are structurally incompatible with what USTC needs to become.
Transaction taxes only function when there is high, sustained on-chain activity. USTC, however, is not a growth-phase asset; it is a legacy liability. Designing its recovery around transaction volume would make progress dependent on speculation, high transactional turnover, and constant user activity, rather than on balance-sheet repair. Ceramic deliberately avoids tying recovery to something so fragile.
More importantly, taxes operate by removing tokens rather than adding value. Burning USTC through fees does not create backing or improve solvency; it merely reduces visible supply. Ceramics instead focuses on processing USTC into productive, yield-bearing assets, allowing value to be rebuilt over time without forcing market sell pressure.
Another reason taxes are excluded is their impact on ecosystem health. Any system that penalises usage creates friction for users, builders, and liquidity providers. Ceramics' plan is designed to minimise friction, not increase it. A stable asset must be predictable and low-cost to use; embedding a tax into every transaction works against that goal.
Ceramics also avoids governance-driven tax tuning. Tax-based systems tend to rely on constant parameter changes in response to market conditions, which introduces uncertainty and politicizes recovery. Ceramics replaces this with mechanical processes governed by collateral flow and yield, not votes.
In short, Ceramic does not reject taxes because they are “bad,” but because they were never the right tool. USTC’s path forward requires asset accumulation and debt processing, not volume-dependent burns. By removing taxes from the design entirely, Ceramics aligns recovery with accounting reality rather than transaction optics.
ust1cmm.com

Why Ceramic Doesn’t Use Taxes

LeonardoLUNC

Other articles published on Feb 9, 2026

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