Ofcourse I’m not complaining of what happened. I’m saying what should happen from here incase you did not get it.
Exactly. Atlast someone with facts. The promise always was UST can be exchanged to 1 dollar worth of Luna and that makes sense because it is backed by Luna.
that is right just abandon UST and focus on building luna. It wasn’t a risk free investment anyway, lets focus on building luna 
But it was promised UST can be exchanged to 1 UST worth of Luna, that promise shouldn’t be broken.
1 UST worth of LUNA is not the same as 1USD.
Please read the whitepaper before you talk…
• When TerraSDR’s price < 1 SDR, users and arbitragers can send 1 TerraSDR to the system
and receive 1 SDR’s worth of Luna.
• When TerraSDR’s price > 1 SDR, users and arbitragers can send 1 SDR’s worth of Luna to
the system and receive 1 TerraSDR.
Any Terrastable coin (UST, KRT, EUT) can always be burnt to receive 1SDR worth LUNA,
for example UST should always be able to be burnt to 1 US dollar worth LUNA.
@Hyperion agree a stablecoin should be stable.
No, I am not that familiar with Terra’s promises beyond the obvious one. Will be willing to listen tho.
The assumption is that it keeps the peg, then it is the same.
Think LUNA as the asset and UST as the liability. When LUNA marketcap is below UST, there is a huge death spiral risk, as the assets are less than the total debt. If UST gooes down, UST buyers divide in 2 groups: Short-term speculators that will mint LUNA by buying UST and real buyers of UST that believe in the 1$ peg premise. Ín the other hand and whith LUNA we have the same, LUNA buyers who burn their coins (to preserve UST peg) and LUNA wallets that withdraw to an exchange to have profit (or less loss). The most critical (dangeorus) cash flow are UST to LUNA via mint and selling LUNA via exchanges aka leaving the network. This idea commit to stop that LUNA-exchanges flow and incentivize a burning system with them. As less LUNA is going to exchanges, supply there will not increase that much and cash flow will stay into the system. I hope this is useful 
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Actually it doesn’t matter if the UST is peg to 1USD or not,
even UST is at like 0.1c of USD, 1UST still need to be burnt and receive 1USD worth LUNA
it’s also the mechanism how UST can peg to $1
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UST is 0.2, LUNA is 0.0004, LUNA MkCap few trillions. What needs to happen for it to restore peg from this state?
The underlying dynamic matters, e.g. an overcollaterized stable coin is usually stable, but has the risk if collateral lose too much value before liquidation, in which case, the person who posted collateral will lose the collateral, and the stable coin holder owns the remaining value of the collateral.
Luna/UST dynamics is a bit different, roughly speaking, UST holders can mint Luna to dilute the value of Luna holders, which was promised. The problem is there is no upper bound on how much Luna can be minted per UST, which creates a singularity, i.e. Luna market cap converges to 0 and Luna loses all fundamental value it will be diluted to 0. This problem can be solved if we put an upper bound on how much Luna can be minted per UST.
I think that the main point you’re missing, that most people don’t seem to be talking about - is that LUNA can exist even if it doesn’t reach it’s high point again. Worse case scenario, it becomes a meme coin with fluctuating value.
Whereas with UST, there’s no point to it existing if it doesn’t reach $1 again.
Without more captical (huge VCs) coming in, I don’t see there is a chance UST repeg to $1, but still TERRA cannot abandon UST, it’s a promise and trust to its creditor, if you fork a new chain with new LUNA coin but left UST losing its peg, no one will trust their new ecosystem anymore, also the new LUNA coin will be worth nothing since no trust on TERRA anymore.
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In the same sense, the developers can rug-pull the project and create a new chain. But that is morally unacceptable and probably also illegal.
Do you want to break the law?
Would you trust and invest in the new Luna if Terra decides to ditch UST owners?
yeah, maybe propose to have a mascot as well. LFG LUNA
UST was not a scam but a high risk investment not backed by any stable asset. They were giving away 20% APR for a reason. High reward = High risk. If stability was your priority then there were better options.
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