Summary
By starting the LUNC burn, the circulation of Lunc is reducing. The next step will be enable the market swap in controlled manner. So that the minting rate will not faster that burning rate. such the UST will be slowly peg to $1, it could take 1 - 2 years, but I will eventual back to $1.
Motivation
Peg UST to $1 will be important to dApp. It will drive onchain activities, burn more lunc.
Proposal
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Before starting the market swap we need to control of market swap minting rate
→ change BasePool size from 100M SDR to 100K LUNC
→ change PoolRecoveryPeriod to 144
The daily minting rate of Lunc will never more then 10M LUNC, it will be in acceptable rate -
enabled the market swap.
Pros
It is very similar to orginal market swap only very few code change required. 1. change the pool currency to LUNC and 2. change minimun spread fee back to 0.
Cons
The UST burning rate will be slow, it will take 1 - 2 years to peg to $1