Yeah i know i know. Don’t get your torches.
All the biggest projects in crypto is inflationary.
What that means is, we don’t need to make Luna deflationary to be successful.
Going forward i think Luna/UST should be handled like this.
Same burn/mint feature.
But if let’s say this month UST minting was doing great.
The minting burned 10 million Luna.
The next month there should be an inflation of 10 million Luna going to a UST peg treasury.
Let’s say the next month UST wasn’t doing great. There was a minting of 10 million Luna.
Now the treasury will step in and starting to buyback 10 million Luna from the market to tame inflation and boost investor protection so people feel confident buying Luna. Making UST re-peg.
Furthermore i think a portion of the initial inflation should go to old stakers and UST holders to compensate. Maybe with a lock up period.
What do you guys think?
I think the inflation is just getting started
A) Title makes no sense. We do not have anything close to ‘deflation’
B) Your proposal is extremely risky, and in my life opinion, would increase the likelihood of ALL holders getting $0 for their tokens.
Further expansion of the $LUNA supply is the last thing we should do!!
As a long-term holder of numerous tokens on Terra’s ecosystem, it’s obvious to me when I see a proposal made on the basis of one’s self interest
If you care about this ecosystem, you would be encouraging new buyers and advocating for an immediate reduction in / burn of LUNA supply
I know we don’t have deflation right now. But in all of terras life there have been extreme deflation. Much of the time 1 million Luna burned or day.
If all the deflation. Had been inflated to a de-peg vault. It would easily have been 2× the market cap of UST. It would be practically impossible to break the peg.
I lost a 150.000 dollars on the crash. So don’t assume anything about my own interests. By contrast, i am a strong believer that it was the right decision that Luna holders were getting crashed instead of UST holders.
Luna holders = investors with the risk that comes with it.
UST holders = not investors. One dollar today should be one dollar tomorrow.
It would be nice if old Luna holders and UST be compensated somehow. But right now I’m focused on how to make UST and Luna better
We are aware that many large projects are inflationary but at some point in their life they will have to implement some system that makes the network deflationary. A coin loses value while there are more in circulation.
In the case of Lunc inflation is very high.
One idea to reduce the amount of USTC in circulation is to lock them in the staking pool for X amount of APY determined by an algorithm. Do this while burning part of the tokens in circulation and start the repeg process.