The purpose of the proposal is to restore some semblance of credibility by reducing the absurd supply.
I don’t know all the particulars of how Luna’s chain works, but bear with me and feel free to point out holes. My understanding is that UST is backed by ~$1.8B of BTC and other assets and that we ended up with 6.5T Luna due to the algo printing to help peg. That didn’t work, so kill the algo and minting in general for now.
I propose we liquidate the crypto assets backing luna, while accruing a minimum of 10B luna through market purchases. This will show that the luna team is dedicated to improving the current price. However, the goal should be that the TEAM will burn all minted supply distributed to them, get any teams who were distributed tokens onboard with burning the distribution they received, and burn all but 10B purchased at market on exchanges. It won’t take long for meme magic take over and push price to $1, providing the supply is being burned every hour. Luna was #3 on cap and it shouldn’t be overly difficult to reclaim that position by simply converting all UST to luna, dumping the assets and aggressively buying and burning.
On the surface, the team is literally burning $1.8B dollars by buying back their tokens to burn them, but that would be the most confidence inspiring move you could make, while the reality is that the team would be holding $10B worth of luna at $1, which it should strategically burn and liquidate long term, in line with ensuring ecosystem stability.
I have no clue how much terra charges for their service, but if it were pegged to a $ value, but only payable in luna, and each payment was NOT converted, but BURNED, it would provide an ongoing deflationary measure to decrease supply. It won’t provide an immediate price reset, but it provides immediate relief of the supply problem, shows the public that the team is dedicated to LUNA’s success and is working towards serious deflationary supply measures.
What about bitcoin? What about it… Bitcoin’s not luna’s problem, and vice versa and as long as the liquidation of assets doesn’t send BTC below $20K, it should be fine and would provide a great buying opportunity lower for the team to reacquire some of the assets it liquidated, as well as provide a great opportunity on other assets as well. TBH, I don’t know what btc’s liquidity currently looks like, or what the implications of liquidating $1.8B of bitcoin would do, but like the rest of you, I’m looking for a way forward where people can actually get out of this situation without realizing absurd losses if they were to DCA.