Bring Back Seignorage and Fund Yield Reserve with it

Growth in the yield reserve is a fundamental driver of the flywheel while Terra bootstraps its network effects. We have been relying on TFL to manage this subsidy, but I think we could automate this. If we bring back seignorage for the BTC reserves, why not also allocate some percentage of seignorage to funding the yield reserve? This could make surging deposits self fund while in hyper growth mode.

Here is one example of an allocation:
50% LUNA burn
40% BTC reserves
10% Anchor Yield reserves



I think that we already have a mechanism for LUNA burns, so adding a second one just seems counter-productive.

However, I really like the idea of having some of it going to BTC reserves and I FREAKING LOVE the idea of some of it going to the Anchor Yield Reserves.

I would literally go buy more luna just to vote “yes” on reintroducing seignorage with a 50/50 split between BTC reserves and Anchor Yield Pool <3


I am of accord. I think it’ be a great idea to reintroduce seignorage and have it help fill up the anchor yield reserves. Anything to help prop up the ship


So what would be the propose of TFL holding 300 Million Luna?
I would agree to that, if TFL burns all their holdings… which wouldn’t be a smart move.

TLF holds a lot of luna and @dokwon is being smart how they are allocating their lunas.

But at some point, I would say TFL should burn most of his holdings, doesn’t make sense half of the Terra protocol MC is held by TFL.

If they do, I bet market will price Luna way higher as I do believe some of the market participants, like me consider TLF holdings when calculating the Luna MC.