By rewarding 5/27 UST holders, Revival 2 proposal rewards only UST still held throughout “ordeal” time. The advantage of that proposal is if you took any UST off chain at any time you already found some compensation. Rest is market determining compensation level.
Ust holders will be willing to lock up their positions, release them linearly, and reduce time pressure to restore luna and ust, so that not only do they not need to compensate the holders before the attack, but these assets will not be sold immediately, you are trusted, and people will use ust again , As for the ust holders after the attack, sell or buy luna for a limited time, and after the ust is emptied, restart the stablecoin.
May 11th, 3am. Is the point that UST broke below 50c/$. Luna at that time was $0.20.
This would be a good “doom point” for rewarding ON CHAIN Anchor and LP bound UST. Prior to that point, everyone who sold did at least better than 50c/$. For that group to be made whole at 50c Anchor+LP bound UST is under $3B. 30% of Lunav2 at $5B market cap would cover $1.5B of that. Paying UST holders at doom point 25c/UST in value.
Without forking v1, v1 could have a revive old luna user airdrop. Mint up to another 6.9T lunaclassic and airdrop to “doom date” holders of luna and UST. USTClassic holders can be part of that mint reward. UST classic could still exist as a mostly unpegged asset, but UST would be given special rights: 1 UST can always buy/mint 1 luna in exchange for burning that 1 UST (, but only when Luna worth <1UST). The right (of Luna) holders to burn 1 luna for minting 2 UST but only when UST under 1$-peg (Luna worth under $1) (A spiral up plan for both UST and Luna (classic)). UST holders become Luna holders indirectly as a result of rights attached to UST.
As principle of 50%/50% ownership between existing and “traditional” holders, giving a 50% rektdrop through minting is a great way of attracting a big crowd back to the classic v1 chain.
Its not about being made whole or the time of the snapshot. Its the percentage vs what everyone is being allocated.
We can’t simply take a snapshot, cal a UST value, and allow airdrops from that. Makes no sense at all and will doom the fork.
Ex:
For people who got out of terra UST should not be made whole, relative to what they are being given back.
Assuming people are going to get 50% usdc in relation to their UST (ie 10,000 UST gets 5,000 USDC) at a snapshot, of that 50%, what percentage of value did they get back after selling UST.
Say we are giving back people 50% and someone had 10,000 UST. We can’t simply give them 5,000 USDC. They need to get 50% in relation to when that UST left Terra and what the value was at that exact block.
To further explain.
10,000 UST leaves the blockchain at .5/usd, we can assume they then sold ust for 50 cents on the dollar. Therefor they should be able to be given 5,000 usdc in relation to the payback ((10,000 USD - 5,000 USD they redeemed) * payback percentage, so 2,500 USDC.
Not suggesting making people whole. But taking a snapshot point (doom point) where UST first lost the 50c/mark is/sets a point prior to where those who got out should not be compensated. Including bonded (LP/anchor) UST further reduces eligible pool and then compensation cost. Aiming close to 25c/UST as a compensation package may be in reach, and deeply relieving for those affected without high compensation costs or bailing out those who saved themselves with a better (in hindsight) deal.
I agree with this. UST holders shouldn’t need a backdated fork. They either chose to sell UST for some amount based on the risk/reward of what is left or are holding in the hopes of some kind of recovery.
I can understand a backdated LUNA fork, to give more to holder before the massive dilution. UST however had the opposite, where UST was being removed from the market.
I agree but what I am saying is the snapshot needs to account for the actual value of UST of each wallet, not just in general at a snapshot block, and when each wallets UST left terra at what USD value.
Even if the UST was valued at .5 and we snap shot that, and then pay back everyone at a 50% rate UST/USD (To keep math simple, although should be more over time), no1 should be being allocated 5,000 USDC, not one person. Why? math invoved, this makes no sense.
It should account for the value their UST left terra.
For example:
If I had 10,000 UST, brought it to Binance at .50 price and sold it for 5,000 USDC, I shouldn’t get 5,000 USDC more (50% of my 10,000 UST), but 2,500 more because I already was able to redeem my UST for half the pegged value at .5. Therefor my actual UST should be accounted at 5,000 UST, or simply 5,000 USD, and then be airdropped 2,500 USDC (50% of 5,000 UST)
The current agendas i am reading are very vague and focused around 2 things: Snapshot time and airdrop allocation. Nothing I read goes into value of UST per wallet.
It would be possible to do on chain analytics that compare every “withdrawal to an exchange” timing with market value of UST/luna at that time, and exclude those withdrawals from compensation formulas when “those acts probably did ok relative to everyone who stayed”
Snapshot times (at a doom point that is later than May 7th) are just a super easy way of trying to do the same thing even if it is less accurate than individual transaction analysis which is harder to audit within a simple contract.