Summary
As a long term investor and founder of an startup I’m here to offer a simple solution to solve this issue in 3 steps. Motivation
To Fix the Ongoing crisis.
Proposal
Stage 1: Buy Back and Burn all the excess minted Luna. (This shouldn’t be hard to achieve given the lower prices)
Stage 2: Let Luna recover.
Stage 3: Slowly start paying back UST holders.
As we all know by now UST cannot be salvaged. Even if the Peg is restored to $1 it has lost the market confidence required for a stable coin to attract investors and not to mention the vulnerability that already exists with UST. Therefore, any recovery plan should be to recover LUNA and then slowly pay off the UST holders.
For any kind of repayment first there needs to be money. Once LUNA recovers there will be money in the ecosystem which can use used to slowly pay off the bad debt in batches aka UST. The earlier proposals focus on creating new coins and distribution but everyone fails to focus what will be value of those? What’s the difference between having 1 million coins valued at 0.00001 vs having a new 100 coins at 0.1?
Unless you recover Luna and bring in money, everyone loses.
Exactly! because LUNA is not a stable coin and has great upward potential and can be used as the currency of choice in the Terra ecosystem which will further propell its growth. This is the only way everyone wins.