In my opinion, too much weight is given to UST holders that have held on. Doing a simple calculation (please correct me if I’m wrong), this would mean:
Staked circulating supply May 9th:
0.4*800 million = 320 million
UST in circulation end of V1 ~10 billion
30 UST would be even to 1 LUNA V1
UST price = 0.10 USD
3 USD would be even to 1 LUNA V1
I found below proposal very interesting to use the LUNA/UST conversion ratio at the time of the snapshot for the allocation.
Maybe the two proposals can be combined so relatively more weight is given to the LUNA holders before the death spiral.
This would mean:
- Convert LUNA V1 to UST with the proposed ratio in above proposal
- Add this to everyones UST balance at the end of LUNA V1/ start of LUNA V2
Divide the 80% that is now allocated to these holders in accordance with this ratio to mint LUNA V2.