Hi my dear Lunatics,
The Terra protocol is doing well and needs no further bailouts or whatever you could imagine right now. Now we have to let the market regulate itself naturally.
Indeed, the spectacular crash of the past week was painful for everyone. Nevertheless, I think it is part of algorithmic phases of the protocol itself. The protocol grows by successive phases of expansion and contraction. We have simply witnessed a phase of brutal contraction.
Now, we have to wait for the market to do its job of natural regulator. Namely, slowly raise the LUNA to the price of $0.0017 per unit. At that time, the UST will naturally PEG the US dollar. It’s only a matter of days or weeks. In fact, the regulator is already playing its role.
Once the market has played its role of natural regulator and therefore the UST will again be worth 1 US dollar thanks to its symmetry with the LUNA, we can begin the expansion phase.
During this expansion phase, we will see UST supply increase and LUNA supply decrease. Once the PEG is reached, the decrease/increase of LUNA/UST will begin at approximately 612 LUNA for 1 UST until reaching in a more or less distant future the value of 1:1 or even more depending on the rate of adoption.
So, let the market regulate itself and digest this contraction naturally instead of trying to manipulate it with more or less hazy hypothetical rescue plans. This is the price to pay for a decentralized currency. Moreover, we are not safe in a distant future from a new contraction of the protocol which will resorb itself to leave after a few days or weeks a new phase of expansion.
Have a nice day
Let the market regulate itself… but slowly raise the price of Luna? That makes no sense.
The current chain is a supposed proof-of-stake chain without any new staking allowed. It’s possible that the team is buying time since they’re probably making ridiculous gains from their staked Luna (1000%+ APY?), and them selling that UST on the open market will tank the price of UST for sure. There is no re-pegging mechanism in place anymore (at least as far as I understand), so both Luna and UST are at the whims of speculators/investors at this point. There is no re-pegging.
It took an embarrassingly late emergency intervention in order to stop a potential attack on the network. The market is already not working.
Yes, I am 100% serious. And at the current pace, the PEG should be done around June 1st, 2022.
Have a nice day.
The market works but it desesperatly needs fresh currencies to continue the expansion of the cryptocurrency world.
On the other hand, there was not enough safeguards or incentives to allow a smooth contraction of the Terra protocol. The attack, if there was an attack, only created an extremely brutal contraction that was predictable once the LUNA broke above the price of $1.
Therefore, this contraction is beneficial for all crypto-currency markets since it will bring a significant amount of fresh UST to the market when people will redeem their LUNA for UST.
So, wait for the Terra protocol expansion phase and enjoy the cryptocurrency world expansion show.
Have a nice day
Nothing contradictory here. In fact, it has already started. Once people realize that LUNA will not disappear from the cryptocurrency world, they will buy it from markets. Prices will naturally rise. As simple as that.
I’m not in the lair of the gods to know the secrets of the devs and admins, what they’ve been up to behind the scenes, or what their real plans are.
For me, it’s just a show as Do Kwon used to say. They are playing us publicly when they know everything will be fine.
Have a nice day.
ok, I want to see it.
also the TFL and DK should give the transparency and more rights to the community.
I was wondering why nobody was talking about natural algorithm repeg.
So far, I have lost all may ust. Was invest in ANC in MIR and ASTRO. It s a lot for me. So I can understand people want their ust back aspa. But maybe asap means some weeks.
Is the burn/mint system still working? If so, with time, peg must be reach again.
Of course Luna and all others tokens as fallen. And getting as high as before could be very hard.
May the force be with you guys!
No, the re-peg mechanism was taken offline once they stopped inflating the supply of Luna. There is no re-peg mechanism anymore, and any price increase of UST is just due to speculation plays.
Only community can regulate it
Like S_123 mentioned, the re-peg is down atm.
And even if we add the re-peg mechanism, which is to burn UST and mint LUNA.
people than would buy $UST as an investment and HODL since they know the price of $UST will start to repeg and sell it at a higher price.
This kind of $UST arbitrage makes re-pegging much more difficult since they will dump $UST when it pegs, and might create another death spiral.
The only solution is to de-couple Luna from UST, burn the supply, remove minting and make it public domain as a community coin then she can become Bitcoins Queen!
And a clear plan to buy and burn LUNA would dramatically accelerate this process. You are on the right track!!!
But need the Team and @dokwon to confirm no fork and no restructure. Uncertainty has led to this selloff.
Why so pessimistics ?
Keep faith folks… Or if you knew the future, give me the lotery numbers
I will wait patiently the recover because I believe it’s inevitable.
And you think TerraLabs will not restore it if the Luna reaches $0.0017 ? They will ignore the opportunity to become the biggest stable coin of the market ?
Yeah, why not if they are stupid.
If TFL had hope in UST regaining peg, they wouldn’t entertain these proposals. Why? because all the entertaining of proposals is making more people get out of UST while we can
lfg reserves only 200m how they buy this shit out and bring this shit back to normal.