The Terra Luna ecosystem is operating like a failed bank. It needs to be recapitalized, and needs new governance. Two new airdropped tokens on the EXISTING Luna blockchain can effect the needed compensation and governance changes.
The bank branches are open, but there’s no value moving around. We just witnessed a digital ‘run on the bank’. We must prioritize the making whole of small UST / aUST account holders or cryptocurrency as a whole will face an existential crisis (mass adoption is still years off, if ever, and our actions here are being watched and will signal to everyone what the future looks like for the newcomer). We must show competent self governance and discipline now or face being regulated into the ground.
UST / aUST holders must be made whole on a per account basis up to a limit of e.g. $250k, similar to FDIC insurance. I propose two airdrops on the EXISTING blockchain (not a forked chain). First, airdrop UST1/UST2/UST3 tokens representing tiered claims on both existing UST/aUST account balances and pre de-peg snapshotted accounts (we can get nuanced about what’s fair in the weighting later). Second, rename the 6.5T LUNA to Luna Classic (LUNC) per DK and make it a deflationary gas token. All transactions will require burning this token. We can get exchanges involved in the burning process too. Third, airdrop a new LUNA2 token in a pre de-peg, snapshot weighted fashion (including bLUNA, cLUNA etc.) that represents a new governance token. Staked LUNA2 (sLUNA2) will get a 7% inflationary reward, per DK.
Now here is the key: in order to stake and actually use the new LUNA2 governance token, one must supply 1 USDC + 1 LUNA2 to create sLUNA2 (one way ticket). The USDC is placed in a Treasury. As the Treasury meets certain funding goals, these funds are used to compensate the UST1 token holders first, then UST2, etc. UST1 represents UST / aUST valued at <$10k per account.
UST2 represents UST / aUST valued between $10k and $50k per account.
UST3 represents UST / aUST valued between $50k and $250k per account.
In this way, smallest accounts get filled first.
Additionally, we can recruit the assistance of friendly exchanges e.g. Binance and request that they take out LUNC fees at 0.5% and burn for us. Enough exchanges willing to donate fees for a year or two will reduce supply significantly.