hello, it is more an open question than anything. But I can sense from randal Quarles that collateralised stablecoins may be good in that they mean more use and purchase of fiat USD or treasuries. In the case of algo SC, two possibilities. The usage is made Illegal or it gets considered as a usual cryptocurrency. I was wondering, has the team started thinking on whether adapting terra model to a semi collateralised coin could be possible in extreme circumstances ? As network and ecosystem grow by the minute, at some point it may economically be less costly to change the model than to let the ecosystem potentially face the direct consequences of some ill-intended raid on Algo SC. So is there a way that UST or even LUNA can shift to semi collateralised system easily ?
One of the core missions of Terra is to be a fully decentralized stablecoins platform and you want to know if it can turn into another DAI? Why would anyone want that? And how exactly would they ban Terra stablecoins?
They can ban on-ramp services, maybe even CEX from trading it, but apart from that it would be downright near impossible to ban you as a user to use your UST on dApps. Even if every country would join forces (and I mean that would be some next-level sci-fi type of event) to ban UST and LUNA (and any other terra stablecoin) from on-ramp and CEX services, they would still need to ban all other tokens that can be exchanged on DEXs for LUNA or UST.
The only thing banning would do is lose them taxes, as people would stop reporting gains on LUNA.
Sure they can make it hard on users to use it, but if anything (it is my opinion that) the hammer would fall down way sooner on collaterized or semi-collaterized stablecoins rather than fully decentralized ones.