Im not a pro in Crypto, but after experiencing the depeg event on UST, I would like to share my idea of how to save Luna, UST, and the entire community at this point. I hope It’s worth of your time to take a look at this and please share you idea if this will work.
This is what we need to fix:
Excessive supply of UST in the market
Excessive supply of Luna in the market
To rebuild this community and trust and get up from where we fell off.
Here are my thoughts:
Redesign Anchor protocol that stakes UST for a period of different years in different tiers (ex. 1 year, 1.5 year, 2 years) with a monthly airdrop in USDCs ( or any collateralized asset stable coin from the current reserve) slowly paying back to current UST holders and start burning the excessive UST staked at a much reasonable and yet still good APY enough to cover the loss of these UST holders from this depegging event, let’s say an additional 5%, for example at the end of the year before users can unstake. (this is also to drive demand to hold more USTs compared to the traditional financial market)
Same for Luna holders, a protocol that stakes Luna for burning to bring up the value of Luna, and in return each Luna links to a new coin (Terra) that represents the reserve in USD dollar (collateralized assets), each Luna holder gets a share of the reserve as it grows (giving incentive people to hold more Luna), Luna holders has 1 months waiting period before they can claim their share of the reserve. (again make sure Terra have time not have the reserve drained)
Here is what we can achieve:
*So this buys time for the Luna team to rebuild and fix their current system and to redesign a better algorithm stable coin. Meanwhile, to show the crypto space that Luna can rise from ash, and in the long run, the team can find new investors, too.
*It burns the excessive circulation of UST and Luna in the market right now.
*Terra tokens represent the share of reserve that links to the collateralized assets, so before they come up with a better and more resilient decentralized algorithms stable coin model.
*A staking period will help Terra team how much Luna and UST will be withdrawn and have time to make sure they have enough reserve to back up the peg and reserve.