Create two non-public tokens (LUNCrl & USTCrl) for LUNC & USTC to mint while burning down their Excess supply.
Reduce the excess supply of both LUNC & USTC coins
The core utility of LUNC was its mint & burn balance to maintain the peg of USTC to USD So why not create two new tokens/coins on chain to provide the minting needs of both coins, while removing excess coins from the chain.
To re-peg USTC to $1
to re-peg USTC in the default manner would mint LUNC
*(This is not what any LUNC holder wants) *
So why not in the short term create a control token that is not publicly available (call it USTCrl) that will allow USTC to mint USTCrl while USTC burns down it’s excess supply to aid the re-peg to $1.
Reduce LUNC Supply
By the same method we could Burn down LUNC using another control coin (call it LUNCrl), we configure LUNC to mint LUNCrl while LUNC burns down its excess supply currently not owned by anyone on the chain thus reducing the circulating supply.
Once both USTC & LUNC are back to reasonable levels we could then re-link the two tokens to thier original configuration. This would provide the Terra Classic Network with its original USP and return the value lost in the May 2022 crash.
-We could limit the burn rate per-day to control the deflation of both coins as not to impact the market of either USTC or LUNC to much in one go.
I’d Suggest the following
- LUNC = 10 billion burn per day limit
- USTC = 1 thousand burn limit per day
-As for the control coins/tokens (LUNCrl & USTCrl) there is a president in financial Services for deflationary moves & the right-off unmanageable debt, Think Unsecured loans & Asset lost Mortgages. But in the case of LUNC & USTC we class it as a new on-chain Control method to restabilise the network and value of the coins on the chain.
- This would only work for non-owned, on-chain coins/tokens. anything held in exchanges and private wallets would have to be burnt by current and other future methods.