Burners continue to demand that Terra stay on its current chain. I do not think this is reasonable - at all
A burn is a buyback. Buybacks would be extremely expensive, we’re talking about multiple billions of dollars to reduce the supply - this is not a solution, especially considering the BTC reserves were spent trying to defend the $UST peg. Wheres the money gonna come from?
The existing chain also needs major updates considering its breaking off from $UST, etc.
I think kwons latest proposal is really excellent, it benefits everyone in the ecosystem. I think it actually benefits buyers now the most considering the more tokens you amass now will see you receiving more tokens on the new $LUNA chain.
However, I see $LUNAC having issues due to its massive supply. What if Kwon’s latest proposal included a hardcoded transaction tax into $LUNAC. A % of that tax could also be split off and sent to $LUNAC validators to continue to protect the chain (otherwise what benefit will they have post fork?)
win/win
PS: mods can you please reopen the damn discord now?
As someone who has brought Luna am all for it to succeed and he is right we can’t spend money that does not exist. However we could charge a larger tax for miners and say eat away the coin over time.
Maybe not the easiest option as you would need to make the nodes centralised and limit it to only terra nodes that can do this.
It would hurt miners. But a government tax that is high enough to say eat 10mil per year could see it burn the needed coins over time.
The down side is after this those wallets and coins would need to be labeled unusable to make sure the coins are not put back into the system.
Sad to see that there is people left that still believe that all the reserves were really spend to defend the UST peg. Anyway, I don’t think buy back is doable because they emptied the reserves but your proposal is a good approach.