How is the snapshot taken?

After LFG_org mentioned about reimbursing smaller wallets, I’ve seen countless people asking about this. The scenario is described as such:

  • I owe 20000 UST in Anchor Protocol, way before depeg happened.

  • The depeg happened, I then transferred this 20000 UST from Anchor to Terra Station, and subsequently to a CEX such as KuCoin/Binance/FTX. Note that the transfer was done using the Terra Chain. I would assume that my UST is on Terra chain even though it’s in a CEX now.

  • If the proposal goes through, how does the snapshot be taken in relation to my withdrawal to a CEX. More concretely, if I did not sell my 20000 UST on the CEX, will I still be eligible for this reimbursement? Do I need to transfer this 20000 UST back to my Terra chain?

Basically, the question: For users that transferred their UST off-chain after the de-peg - Do they need to transfer their UST back to their terra station wallets to get compensated?

I am also worried about people gaming the system and buying UST now on CEX in hopes of getting “reimbursed”. Hope the snapshot (algorithm) or whatever method can know.


Once you transfer funds to CEX it goes into the exchange wallet which the exchange owns its private keys. That wallet has funds from everyone mixed together as a total balance.

In that case, exchange will distribute it to smaller users.