Basically Do Kwon’s proposal but keeping UST - the most important part of Terra (imo at least)
To say that everyone has been devastated by the latest developments in the Terra ecosystem ia an understatement. It is extremely important for us to try and move on as a family and stay united in this difficult times.
There needs to be a continuation of the ecosystem, and one could argue that there is no LUNA without UST.
That being said, even with the loss of trust in the algo system and UST, there are a lot of UST holders still hoping that something can be done. After all, a lot of people have put all their life savings into UST trusting it for being a stablecoin and not wanting to risk anything on the volatility implied by other cryptocurrencies (LUNA included).
So, besides the points Do Kwon suggested, I would add:
-
keep UST, burn 50% of it (gets rid of 50% of the debt on it instantly);
-
concentrate on the people still holding UST on anchor and other protocols who didn’t sell throughout the selloff (some got out in time with losses of 1-4%, and others bought low just to profit, this needs to get sorted);
-
the 400M Do Kwon is talking about should still be distributed in return for the 50% burn to UST holders;
-
make the UST holders stake the other 50% of their UST for a period of time (meanwhile work on slowly collateralizing a part of UST and bringing the peg back to 1);
In this time frame, get rid off the crazy apr on anchor, use the reserve for other things, and make Anchor the protocol where everyone who got affected can stake their UST (maybe give a 4% apr). Nobody will object to staking, since the alternative is getting 0.1 on the dollar. Maybe a good idea would be to stop UST trading on exchanges until things are restored (this is already happening since most exchanges will probably delist it soon).
After all this, slowly get things moving again, with normal rates and a sustainable system. You already have the backing, people will not leave if they see there is still hope to get their money back and the ecosystem is still alive and thriving.