LUNA Go Forward Proposal

Numbers are a bit off now that Luna has the total supply of shib :laughing: but u get the point

UST has a circulating supply of 12.12B

  • It has a market cap of $7.4B
  • To restore peg 12.12B - 7.4B = 4.72B of UST needs to be burned
  • Terra validators have overwhelmingly agreed that this is what must be done, UST must be burned and peg must be restored
  • To burn UST (and restore peg), you need to mint new LUNA
  • To burn 1 UST you need to mint $1.00 worth of LUNA
  • Let’s do some simple math
  • Say we can burn all the excess UST all at once right now, and restore peg
  • To burn this 4.7B of UST we would need to mint $4.7B worth of LUNA
  • At the current price of LUNA ($0.03), this means we would have to mint ~156B LUNA
  • In this scenario, the circulating supply of LUNA would increase from 3.5B to ~160B (increase 45x)
  • The price of LUNA will decrease to ~$0.0006
  • Now you could in theory begin to slowly burn down that 160B circulating supply of LUNA (does this sound impossible and like a terrible investment? IT SHOULD SOUND IMPOSSIBLE AND LIKE A TERRIBLE INVESTMENT)
  • The scenario described above is a made up fantasy and is not possible
  • What’s really going to happen is actually infinitely worse
  • First problem: You can’t burn all 4.7B UST at once because you can’t mint 156B LUNA at once
  • There is a limit on how much LUNA can be minted in one day
  • Right now, they are voting to increase the limit
  • This leads us to problem #2
  • Second problem: As you mint LUNA, the price of LUNA goes down (LUNA is diluted), which means to burn more UST, you need to mint even more LUNA, until you descend into a vicious feedback loop of all out LUNA minting madness
  • This is referred to by validators and people who understand the protocol as the “death spiral”
  • Right now you can burn $1B UST by minting 33B LUNA
  • The circulating supply of LUNA goes from 3.5B to 38.5B
  • The price of LUNA is now 0.0027
  • You then burn your next $1B UST by minting 1,000,000,000/0.0027 = 370B LUNA
  • You burned your first $1B UST by minting 33B LUNA. The next $1B UST by minting 370B LUNA
  • The next $1B UST would take trillions and trillions of LUNA
  • I used $1B chunks just as an example
  • Obviously the size of the burns would be much smaller as it depends on UST holders’ bags
  • The point is, LUNA can’t recover unless they just decide to fundamentally change how the protocol works, which would result in Do Kwan and everybody else on the project being instantly indicted for fraud
3 Likes

I am having Ust on binance, so am I in 40%?

This is an okay proposal; however it think it is not as good as just restarting the current chain with UST burn/mints disabled.

If you rollback, and delete UST, that works and Luna’s price will go to a fair market value for whatever the Luna chain is worth without UST. However there are two issues.

  1. This hurts the Lunatics community that actually bought to try and stabilize Luna on CEXs. Even if you rebuild the chain, if you lose the community you lose trust in any future fork of Luna.
  2. Bridges, and centralized exchanges will have to update. This is okay, but it takes time. And in the meantime the value of anything on the new network is up in the air. No one can exchange it for anything, no one can price the new Luna token. And it’s not guaranteed. Some exchanges and bridges just won’t bother.

If you just keep the chain as is, the price of Luna will also go to a fair market value for whatever the chain is worth, plus the community isn’t hurt as much, especially those who truly held, plus everything works as is. It doesn’t benefit the validators as much, but if you try to protect the validators too much the community won’t appreciate the bias. Avoid the fight about distributions entirely, just let market forces handle it.

The better option is to just stop UST burn/mints, and bring the chain back up.
The most important thing to remember is that you need to rebuild trust first, then value.

2 Likes

I’ll side with everyone saying, in some ways this is a good idea, but in other ways it is terrible. Many of us have been active lunatics without staking a single luna. For years we’ve been liquidity providers or holders of the many Luna derivatives. We’re talking, LP tokens that include luna in all derivatives, Prism luna derivatives, bluna holders, cluna, pluna holders, yluna stakers, nLuna vaulters, OR we may have even been on a slow burn of bLuna or cLuna exactly when the crash happened (i know i was)… needless to say it’s a lot more complex than just saying we can snapshot luna stakers as a majority. Yes they are important, but… every aspect should be held fairly here.

I have bETH locked up in my Terra wallet and need to port it back onto MetaMask … will i be able to do this?? devastated all around

1 Like

Please everyone support [Proposal] Tiered repayment: airdrop USDC/USDT to small UST holders on Terra . The team may still have enough money to save the small users of UST like people using Anchor Protocol. There’s about 1.8B of UST still locked up on Anchor which didn’t get taken off and sold on a CEX. The team might still be able to bail us out…unlike multimillionaires and billionaire investors we can’t afford this loss. We were promised a solution to the UST peg but if they don’t have the collateral to do it, at least save 90%+ of UST users.

5 Likes

“it can’t”, but somehow it is

Reality talk instead of this deceived BS proposal:

Only yesterday withdraw my UST to binance thinking of getting at least 0.4 USD for UST, but found new proposal - this chat that Terra chain can be saved. Then doesnt changed my UST and now they sitting on Binance and I cant move them back to terra station to my address. And today ust worth 0.18 usd :confused: Also (damn) my undelegated Luna from staking will be unlocked today :smiley: (extra mega unluck to be late for ~1 week - I thought I sell half Luna for (80 USD) to lower risks to my portfolio). Also a lot UST sitting in Pylon projects. And couple K on ANC in governance.
Want to support Terra Luna, but also what to get at least some refund in new Luna on new fork.
Cheers friends.
Arunas

PS total loss around 20k dollar of initial invested money.

1 Like

you need to distribute a token for the amount that a person put in the old luna

2 Likes

wow some of you guys are literally discriminating others with these ideas
dividing people by “true hodlers” and “those who bought when luna was down blah blah”
saying “true hodlers” are superior… because what? because you do nerd-tech things governance, staking etc?
what if I just bought luna like 80% people and kept in on CEX because I am not as tech involved as you
does this make me worse?
simply now you cannot exactly tell who bought for what reason and yes in case of fork there will be lucky winners who will become rich
but idgaf I want my small investment back. yes some people will take advantage and what? it hurts me more to lose my money than the fact someone took advantage of situation.
if you make any compensation only for people who used certain tech saying they are true… man why??

8 Likes

I am a web3 KOL and the content operator of PANews, the largest blockchain media in the Chinese language district. My Twitter is https://twitter.com/pt_blockchain/.
In the course of my work, I found Do Kwon 's LUNA.

I invested all my savings I could find into LUNA, with an average price of $100. at the same time, I was also actively involved in the Terra ecological project. I mortgaged my LUNA at the node to help the Terra blockchain run safely.

I use my Mars Protocol to participate in lending&borrrowing projects; I deposit bETH, bLuna in Anchor Protocol to participate in ecological deposit business, and I also use UST and LUNA to participate in most of the Cosmos ecological projects, as well as Solana ecological projects.

Today’s bad news came that the LUNA, which I bought at a unit price of more than one hundred thousand USD, is not worth one dollar now.

But Do Kwon doesn’t care.

What did I do wrong? Just too much faith in Do Kwon ?

I personally went bankrupt because of the purchase of LUNA.
Do Kwon should find a way to save the whole Terra ecology, not say a word now.

3 Likes

I bought at $1.65, $4 and $0.09. Still holding and will lose $50k if they role back to before the attack. Tried to help support a community in crisis as a “top 10 coin with so much positive news surrounding it can surely not bounce back”.

Now there’s talks of us, the community who came in at the end being the black sheep and deserted…

5 Likes

It can be done but the issue is time. There is no quick fix out of this situation except pouring funds. If they don’t have money to put in the system then there is no quick fix.

1 Like

Please support [Proposal] Tiered repayment: airdrop USDC/USDT to small UST holders on Terra Governance & Proposals. We can still save 90%+ of UST holders and Anchor users if we prioritize small depositors and “regular” folk. The Terra team still likely has quite a lot of capital to make this work.

3 Likes

When the storm comes, will the staking in fstswap be counted?

Seems one of the reaonsable solutions. Would support it.
However, please also consider the LUNA holdings which are stuck in DeFi indexes that use ERC-20 DEXes to swap in/out of tokens. Some liquidity with the (old) LUNA token might be needed for a short time period for these setups.

I am against this proposal

1 Like

I’m reading the proposal and all I can see is cheap manipulation and greediness to abuse the situation!

There are many users, starting from big $B investors all day to individuals that hold one token, They have all been there for you! and they all lost and bleed EQUALLY the same %. Some of them bought more when the price went down, to recover their losses, others bought the deep as they were supposed to, believing in Terra that it may be bounced back, and maybe even a few probably contribute their funds from pure Ideology to support other people’s losses. At the end, they have ALL been there FOR Terra! each on his one way, and all one big community keep fighting to go on, and bleeding as they do so. so now there is no room to leave ANYONE behind, regardless what are the reasons or timing they bought their tokens. first because it’s not the right thing to do to other people in general and certainly not to Terra’s community that right now needs more than everything to regain trust in the project decisions. , and second, it will anyway not going to hold in court against class action law sue, due to obvious discrimination.

Everyone is EQUAL. it doesn’t matter if they hold Luna or UST, on-chain or off-chain, on terra networks or other networks, on their wallet or on their CEX wallet, if it’s staking or liquid. they are ALL EQUAL!!!

And if the decision will be to re-launch LUNA, or re-lunch UST, it’s fine. and if the decision will be to set a $10, or $1, $0.1, or whatever as a baseline price for Luna v2, it’s also fine. AS LONG that this baseline price and the ability to convert v1 to v2 will be open in a fair way for EVERYONE!

and if the decision will include special rules, like a staking period when converting v1 to v2, to prevent from dumpers hurting the v2 price, it’s fine as well, as long as long that those rules will apply to EVERYONE including the team and funders equally., NO ONE will get better terms over others. we are ALL on the same boat, now it’s up to us if you want that boat to survive or die due to the wrong decisions

16 Likes

Seems like to me this is ded. YOu just violated the laws of decentralization by stopping the chain. Then when u restart u expect us to take haircust on our investment because u devs dont want your work to go down the drain? If u cant make ust right no on will trust u again. Might as well get new jobs. Its bad enough u couldnt fix and took billions of capital. Let this be a lesson to yall. Yall dont know what the fuck yall doin and shouldnt be accepting people funds. Ridiculous how this ended up playing out. Shows to me everybody over there at Terra need to grow up. Ridiculous nobody never thought of this situation and how to plan for it. Rididuclous to not change mintr settings and let chain die. Fcking clown show

6 Likes