Summary
Wanted to post some ideas that I haven’t seen mention by the community yet.
Motivation
I think the Terra network is great and would like to see it continue running. I think doing a fork, will upset/alienate some of the users in our community. We don’t need to all of these ideas, I just wanted to get the creative juices flowing in our community to think outside the box.
Proposal
- Burn all community funds without any opposing mint. Think of this as paying off some debt and reducing total supply.
- Burn all funds in the staking rewards wallet. This is also a way to pay off some debt and reducing supply. Yes, it will suck initially for those staking but it’s better than a total loss of value.
- Implement the BTC (or other coins) reserve backing funding by fees and/or seignorage. This allows us to start the process of being backed by collateral
- Temporarily increase network fees in order to buy back and burn excess supply.
- Temporarily redirect most fees collected to build up reserves and/or buy back burn excess supply.
- Temporarily increase fees using a dynamic algorithm to offset UST being under peg. So, if UST is worth $0.25 an additional fee of $0.75 would be added to mint the UST and that extra fee could be used to fund the collateral backing or to buy back and burn excess supply.
- Offer time locked bonds to community in order to raise funds for collateral backing or to buy ad burn excess supply.
Once we have reduce the supplies to a reasonable level and have enough collateral backing, we can revert the temporary increases. I know this doesn’t leave much motivation to use the system because most fees are temporarily redirected to pay off bills but if we really want to revive Terra than we would need to survive the temporary pain.