This proposal offers a solution.
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TDLR: Let’s buy back and burn 6B UST + 6.498T LUNC by paying 130M$ today and 400M LUNC tokens later when price hits 30$.
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After the buy back and burn we go back to a 2B supply of LUNC tokens only - no more USTs
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We need to buy tokens back and burn them before doing anything else otherwise the network is not safe to use: PoS risk with cheap tokens
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Without the buy back, Luna Classic will simply be a pump and d_mp token as no builder will want to join since it will be possible to steal assets from the network. So no DEFi, no pools, no borrow lending, no NFTs etc. It is a pitty because there are many Apps readily available to use.
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After the price reaches 30$ UST holders get 200M LUNC token for a total value of 6B$
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After the price reaches 30$ UST whales get 200M LUNC token for a total value of 6B$
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Main advantage of using options is that it lowers the cost of the buy back: At current market price it would cost around 650M to buy all the supply. But then as you buy price will increase so really cost of buy back will be more in the Billions USD. With options, we’re buying back at 6B$ but we only need 130M$ today: Options Wiki
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We could simply say UST holders get 200M LUNC tokens unlocking when price hits 30$. But with options they could sell before, if someone is willing to buy the options, some UST holders might be happy to sell and move on. With locked tokens…you’re locked
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How we redistribute the new supply (600M tokens) is up to the community
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Works with other burns in place (from exchange fees etc.)
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