[A Modest Proposal] Burn the LUNA of every LUNA holder who wants to abandon UST

Governance & Proposals
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I see many proposals that UST should be abandoned to “save LUNA”, both on this forum and on social media.

Abandoning UST would be theft. UST is an obligation. Paying UST holders is not a choice: It is the fulfillment of a promise already made. It is the fulfillment of that promise to people who paid money for it.

Furthermore, as I have said in numerous recent posts, UST is what gives LUNA its value. If UST is abandoned, then LUNA will be properly worth zero.

I am not a thief. I am not a scammer. As a LUNA holder, I do not want to steal from UST holders.

Furthermore, I want to protect the potential future value of my LUNA. That means I must seek to restore confidence—to earn back lost trust, insofar as that can be done at all. The only way to achieve that is by making each and every UST holder whole, 1:1, $1 per 1 UST.

The thoughtless, criminal-minded subset of LUNA holders who want to steal from UST holders are destroying the potential future value of my LUNA. They are making LUNA look horrible to the public. And LUNA is hyperinflated. There is just way too much LUNA out there.

Let’s kill two birds with one stone: Reduce the LUNA supply, and get rid of thieves who want to steal from UST holders. Hardfork the Terra network with a new consensus rule that burns the LUNA of everyone who wants to abandon UST. Bonus: It will do wonders for public trust and confidence in Terra.

On a technical level, I have no idea how to implement that. Perhaps we should use a psychic oracle that reads the minds attached to public keys. Anyway, that is an implementation detail. /* TODO */

Please vote for my Modest Proposal by liking it, sharing it on social media, and explaining the basic ethics and morality of “do not steal other people’s money” on an ELI5 level to anyone who wants to abandon UST to “save LUNA”.

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Cannot abandon UST to save LUNA without saving peoples money in the UST. Saving just LUNA means nothing to me, composite solution to save Terra is presumed, I guess…

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UST derives its confidence from a healthy LUNA. If I tell you to invest in UST, a coin backed by LUNA … then you see LUNA is collapsing… would you invest in UST? without LUNA… UST is nothing.

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Agree, from simple explanation in terra website, LUNA and UST are both part of the same story, inseparable. Surely, you can reformat the system to delete LUNA and the burn/mint system but it’ll not be Terra I know. What will it be then?

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LUNA can still exist and thrive as a utility token, meme coin or a shitcoin… but UST is a failed stable coin. Just be honest and answer, are you going to put your hard earned cash in UST ever again even if its $1?

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I might if they repaid their debt and issued UST only in a collateralized form, similar to DAI.

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that’s different because you are asking for a collateral that does not exist atm.

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Don’t know. I still hold UST and can sell it, for loss but quite a serious amount. Surely, trust has gone down. Half of my stables were in UST for the next bear market. UST/Terra was the only project I know different from Centralized stuff like PAX or USDC/T. Other option is back to cash.

Ask yourself what else is there, which isn’t under its own systemic risk?

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First and foremost, it is too late for that sort of talk. We are not hereby discussing how to market UST to new holders; new UST is not even being issued now. We are discussing the fulfillment of promises already made to people who already bought UST.

Beyond that…

One does not “invest” in UST. One buys UST as a promise that it can be redeemed on demand for the same dollar as was put in.

UST has no upside potential. On the flipside, it has no downside potential. As I said elsewhere, LUNA takes all the profit and all the losses from UST. That is LUNA’s purpose for existence: To absorb all volatility from UST, both up and down. Otherwise, LUNA has no reason to exist.

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Hydra’s proposal is the most sensible

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if you want stable coin then go for USDC. In reality UST was never a stable coin, you cannot have 1:1 peg when you don’t own the underlying asset that’s USD but rather a volatile crypto.

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Just be honest and answer: Do you want to steal from UST holders who already paid $1 for each UST based on the promise that they could redeem $1?

LUNA holders (including myself) bought with the full understanding that, by design, LUNA gets diluted to protect UST. UST holders bought based on the promise that they would be protected.

Irrelevant here. We are not speaking of future prospects for hypothetical new UST issuance.

We are discussing the advocacy of stealing from people who already bought UST, and why people who want to do that should be shamed, shunned, and dismissed as scammers.

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@Hyperion we can argue all the algorithmic coins are new tech and pose a large risk when entering them. Experience shows they all have failed until now, no one has proven enough time in the market. So, you can buy BTC for 69K then sell for 29K and say the delta was stolen from you, while you knew BTC has a chance to go down, not just always up. Isn’t that same?

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It is not that if nobody will never lend me money again, I won’t need to repay my debt. I guess people are just talking based on what they hold or used to hold, rather than what they think is the most correct.

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Just be honest and answer, are you saying that UST was a scam all along?

I didn’t think so. I’m asking if that is your opinion.

UST claimed to be a stablecoin, and promised a 1:1 peg. (Why do I even need to say this?)

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I did not steal anything… instead I tried to help you with my LUNA to re-establish the peg. UST was flawed from the very beggining and there’s no point in saving a flawed project. Instead if LUNA survives then you may still get your money back…

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It is absolutely not the same! Bitcoin never promises a peg to the dollar.

Are you aware of what UST is, and what was promised to UST buyers? Are you aware of Terra’s whole purpose for existence?

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To be fair, if you read the whitepaper, UST was never promised to be completely risk-free. The promise was UST can be exchanged to 1 dollar worth of Luna.If this promise is broken, that would be stealing.

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Not that it’s relevant, but I am a LUNA holder. I currently have zero UST. You helped me with nothing. And I don’t need to get my money back. Get this straight: Some people do not want to steal money from others.

And when your LUNA bled out value to UST holders, it was only functioning as designed. When you bought LUNA, you knew or should have known that LUNA is designed to dilute itself and lose value when the UST supply must be contracted. Do not complain that your LUNA was doing exactly what it said on the tin. Working as advertised.

I suspect that everyone who complains about this was a get-rich-quick FOMO buyer who grabbed whatever was hyped by social media “crypto influencers”, without even bothering to learn anything about what they bought.

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Of course the death spiral occured because of the design flaw, but this can be easily fixed by e.g. put a cap of numbe of Luna minted per UST, or when certain event occurs, fix the number of Luna minted per UST.