On May 9, 2022, the UST stablecoin's price fell below its $1 peg, causing a panic sell-off that further decreased the value of LUNC, Terra's native token. By May 13, UST had completely lost its peg and LUNC had lost 99% of its value.

The LUNC team is considering whether to repeg UST and return it to $1, but they must weigh the risks, expenses, and potential advantages before making a decision.

Repegging would require a significant amount of UST and could easily fail if the cost of UST falls below $1 again, leading to a sell-off of LUNC and further reducing its value.