create a token that whales can mint in exchange for large sums of $LUNA … collateralize new token with stablecoin … alleviate pressure on algorithm by collateralizing 50% $LUNA 50% whale token.
Whales are sitting on a ton of coins that they have no use of rather than dump at the first rally. Incentivize them to burn $LUNA and possibly even $UST to contract the economy.
- burn 10000 $LUNA and 1 $UST to earn 1 $whaleLUNA
- $whaleLUNA is backed by 2 $USDC/$BUSD/$prefNotUSDT
- alleviate peg pressure on algorithm by collateralizing $UST .5 $whaleLUNA .5 $LUNA
- incentivize $whaleLUNA HODL through Anchor rewards and/or vesting period.
why this could work
i believe there is probably a lot of worthless coins stuck on exchanges … if people could pull them off exchanges and bring them on-chain we should be able to (?) increase burning speeds tremendously for both $LUNA and $UST. Anyone that believes in this project enough to put up 1 additional $ for every $UST they want to collateralize, we could significantly increase the burning speed and stop $whaleLUNA production as soon as equilibrium is reached.
This way whether you lost 30k $UST or 50 $UST you are able to participate in the war on peg.
Make no mistake, $LUNA exists for $UST to exist … we must save the peg before anything else.
if it takes one week-end to reinstate an algorithmic peg that had flaws there should be significant investor confidence in the stability of $UST … and some of us who are willing to contribute “new money” are incentivized to do so and those who were affected can still be made whole if they haven’t sold their assets.
just an idea not sure if it could work … please feel free to comment if you have any opinions on the matter
p.s. : then after we reach pre-attack equilibrium supply and demand of $LUNA to $UST we could also refund $UST users based on pre-attack snapshot… and the new distribution of $LUNA post-attack would be final … meaning people still speculating to keep $LUNA alive are compensated. and $whaleLUNA could either be burned after equilibrium is reached … or it could remain as another reserve currency for $UST peg indefinitely with a capped supply … this way the whales that want to contribute to the next 5-10 year vision can HODL their $whaleLUNA perhaps staking for increased Anchor APY