Fix UST - The new pair USTC - LUNA v2 - The only way forward!

Without their algorithmic stablecoins, Terra is just sugar on top of Cosmos.

That means that what gave Luna value what the pairing with UST and other stablecoins.

So forking Luna without stablecoins will make it hopeless, as the whole ecosystem would just go back to Cosmos.

Considering the above, it makes sense that a fork YES is necessary, but with a fixed version of UST. We could call it USTC, UST-collateralized.

Hence the value generation logic would continue, but in a new chain, so the peg will be established at the beginning, and it will be partly collateralized at least (like 10%), but remain an algorithmic stablecoin with tweaks to punish bad actors and control supply like explained in this comment by @nebamon LUNA Go Forward Proposal - #734 by nebamon.

The great invention of Luna was the UST-Luna dynamic; this magic will live on with USTC-Luna.

Also, ideally, the technology behind UST should be made open-source for the whole community to contribute and enhance. That alone would repay all debts to Humanity, karmically at least!

UST worked; it just had a vulnerability. When a system has an exploit, you do not shut it down; you fix it! And in that case, this fix can only be done by forking!

The algorithmic stablecoin dream did not fail; it succeeded, and the system worked. It just had a minor vulnerability (that was exploited and cost the market 40B nonetheless). It just demands the balls to publish the fix and try again.

Last but not least, anyone investing in Blockchain should understand that the space is brand new and highly experimental. If they want safer investments, they have traditional banks and institutions.

Technology is never perfect; you always have to iterate onto infinity. And the more you go, the more robust the system becomes!


this makes much more sense to me, Luna is the one thing left which has market/brand value as we can see as it’s being speculated up, to walk away from it from a business perspective is the wrong approach

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Yes, agree, without the compliment from stablecoin, Luna would not be able to compete with its competitors, for example, FTM and NEAR as these two are at attractive prices right now

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@dokwon @FatMan Please consider the above. I think the stakes of that decision go far beyond the 40B loss. It’s about whether algorithmic stablecoins work and whether it is possible to decentralize money truly! I believe the experiment succeeded but demands a minor fix and another iteration.

The stakes are so high that many powerful institutions probably wanted Terra to fail. Do not capitulate and give them that victory! They won a battle, not the war! We, the open-source community, will win the war.