As we all know, eventually we will repeg USTC/N and it will require collateral. Relinking USTC and LUNC will help with reducing the LUNC supply and bring the relationship of LUNC/USTC back to equilibrium as the system corrects itself. However, I believe this is only the first step. I believe we need to have a separate pool / fund to serve as collateral for USTC/N. Correct me if I am wrong, (and with my limited understanding on this topic) generally tokens are backed by value which is ultimately reflected in the price – something which has been lost due to the amount of debt USTC has taken on.
Im proposing the creation of a separate pool for the sole purpose of purchasing stable coins (USDC/T, BUSD, etc.) and or BTC to stabilize and ultimately raise the market price of USTC. This can be accomplished a couple of ways. Whether or not full backing is required is another topic all together.
The first option which comes to mind is to use a portion of the burn tax which is already in place for this purpose (we can decide later on whether to slightly increase the tax or simply change the parameters of the current tax 0.2% tax and divide it as such).
The second option is to increase the gas fees on the chain slightly and use the difference to fund collateralization.
In the end, a gas fee and a burn tax are essentially tariffs which are imposed on users for using the blockchain for transactions. It is something we all have to pay, and it’s just a matter of knowing “where our tax dollars are going.”
The third option is purely a volunteer option. Users can their own funds for funding this portion of the endeavor. Similar to how a burn wallet was set up prior to on-chain taxation and users would send funds for burning.
Any and all input is welcomed, the sole purpose of this thread is to possibly share new ideas. The format of this post is rather informal, and if a more academic post is required let me know.