Allocate LUNA2 to post-depeg holders of Luna and UST via swap&burn instead of airdrop

Governance & Proposals
1

Summary
The switch to Luna2 should seek to still preserve value of LUNC for pre-depeg holders.

the way allocation to post-depeg holders of luna and ust should be ammended to be done via a swap&burn of LUNC and UST instead of airdrop.

for pre-depeg holders it should still be done as airdrop.

Motivation
If this change is implemented then current holders would have to Choose wether to keep their assets on Luna1 or on Luna2.
This will effectively reduce the supply of Luna1 and UST.

with current distribution scheme the $value for getting Luna2 tokens are as follows:

for pre-depeg Luna holders - 1 pre-depeg luna will get airdrop approx 1 Luna2. so using the price of 100$ for 1 pre-depeg luna, it means for these holders 1 Luna2 will cost 100$

for post-depeg Luna holders - 100$ buys almost 1mln luna now on market. So 1 mln post-depeg luna will get aprox 15 Luna2. therefore in this case with a cost of 100$ u get 15 luna2, 15 times more than pre-depeg luna holders

for post depeg UST holders - 100$ buys almost 2000 UST on market now. 2000 ust will get airdropped approx 30 Luna2, So post-depeg UST holders will get 30 times more luna for same $cost than pre-depeg luna holders

Proposal
Since, post depeg luna & ust holders get a much better rate for same $ cost then pre-depeg Luna holders

I propose for both post-depeg holders of Luna & UST the switch to Luna2 should be offered as burn&swap option instead of airdrop.

For pre-depeg holders distribution will remain the same via airdrop.

For post-depeg holders there would be a time window in which they can do the swap to Luna2 which would also burn their V1 assets.

The portion of the allocation for these groups which will not be swapped in the agreed timeframe, would be sent to community fund.

Advantages: the supply of LunC can significantly decrease and it will also help keep the governance distribution closer to original one.

also pre-depeg Luna holders and UST holders will have a prospect to recover more value via LunC and UST in the future

2 Likes
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I had a similar idea, please see the following:

What is the initiative to burn?
I am proposing a locking mechanism where people can lock their Luna coins. The locking mechanism comes with a fee. One percent of the fee is burned, other percent is shared with a community of people who also locked their coins. When locked, you get a number of coins that are pegged to Luna, and that you can exchange back to Luna (unlock) whenever you want. You can NEVER get more coins the next time you lock Luna. This way, you are deflating Luna, burning Luna, and pegging it to a coin whose price is constantly rising in respect to luna. Also you are EARNING Luna too! It is not a security, because it is not pegged to stable currencies.

Read more about it here and how it is done:
reddit DOT com/r/terraluna/comments/usu7v0/here_is_a_luna_solution_that_nobody_has_considered/

and here is the proof of a concept built on Ethereum, with a white-paper:
github DOT com/olejardamir/Hertz

Mechanism WORKS, and is a valid solution to a current problem. It goes along any burning mechanism that you propose, and it gives people a reason to purchase and burn Luna!

3

Honestly speaking there should be another snapshot taken when Luna was above $1 as many retail investors supported the Terra between $1-$50 when a proposal was progressing by Terra and supply was proposed into Billions. All thought the project is good and Terra was on top of the issue. They all would have been rekt along with all old investors. If Terra consider them in the Post attack Category, their losses can never be compensated as they are going to get nothing compare to the people who bought in very lower price when supply went into 6+ trillions (Compare who bought from $1-$50 with .00005). This plan doesn’t even care about the people who actually wanted to lift the project as per Terra’s plan of action which is injustice. Think about a scenario when supply went from Millions to Billions and price went down from $35 to $1 and many DCA’d thinking the project will bounce back. This is very difficult call but unfortunately there is no consideration for the people who bought between $1 to $50. They all will be ruined with this proposal and can never believe on this project. This seems to be a big mess for most of the retail investor who put their hard earned money to save Terra.

1 Like
4

with the price of luna on bybit if you do airdrop2 for those who buy ustc!! it would stabilize the network very easily!! I would really like lunc at a considerable price because I entered at 10$ but I only have 23000 lunc that won’t solve my losses if ustc and lunc don’t stabilize