LUNC & USTC Rebuild Road Map Proposal

Have you got support from any dev?

1 Like

Our goal is to get down to 1 Billion coins and ultimate goal down to 300 to 500 million coin range

$LUNA v1 to 1B and less? If you succeed that would be miraculous and quite a feat for the whole world to witness. If you have possible solutions and a vision, the rest is just execution. Face the problem and try to solve it, this is the kind of spirit that needs to be supported.

4 Likes

It will not happen over night but between burning, and buy backs it is doable. That said UST is a big part of this recovery plan as well as the community involvement and support. Together we will succeed.

4 Likes

Absolutely yes. An involvement by CZ would be important to support us and make LUNAC reborn stronger than before at the expense of the new LUNA by Do Kwon.

7 Likes

Support you

2 Likes

@Deathstar_Daddy

See my post here on a potential path forward for UST and let me know your thoughts

1 Like

I disagree. UST can be repegged, and should not become just another coin (it won’t survive as it’s not a regular coin). Your post is very thoughful and I can see why you are saying this but UST is not just a coin. It is worth more even in it’s current state.

  1. UST cannot just become another coin. It will go down to 0 as there is no purpose use built features for it. It’s purpose is to add value to LUNA, and without that feature it also adds no value to LUNA, further devaluing LUNA as well. Hope that makes sense.

  2. UST can be repegged and no it will not take Billions, it may take some time and some investment. The market cap currently sits at just over 700 million. With some investment, and purchasing of open market coins, as well as adding a burn system on it’s supply, it can become a very valuable asset. Say newco (ecosystem) buys 1 Billion UST for say between $0.05 - $0.10 thats only $50 to $100 Million. Then institute the transaction tax, say 3 percent. Burn 2 percent, and add 1 percent to holdings.

The point is to add value to back up UST. Those coins we bought for pennies on the dollar will eventually be worth a billion (if repegging is successful) thats a great investment and return. Next we also add the same tax on LUNA Classic transactions. But until UST is repegged the entire 3% goes to the fund, backing up UST.

Then add some outside funding. Say get someone like CZ to help further backstop UST with BNB well you can see where I’m going here.

  1. Imo LUNA Classic needs UST. The addition of a stablecoin built into the ecosystem adds so much value to LUNA. Unfortunately as we’ve seen it can also destroy it. So new systems and safeguards NEED to be put in pla e including caps on transactions and other auto shut down features. The dilution event dod NOT need to happen and if the taps were turned off right away, both coins could have recovered and UST would easily repeg itself. Stable coins can and will loose their peg from time to time, but it was the dillution that prevented UST from getting repegged. Well that and a bad plan on selling about 3 Billion of our assets.

Also once UST is repegged then the tax on LUNA Classic is split with some of it going to burn. This is the longer term plan to also burn LUNA Classic down to about 1 Billion or less circulating supply.

  1. I have an actionable plan, which I am in the process of putting it on Station for a vote. Please stay tuned.
5 Likes

UST cannot be revived and the reason is quite simple. When you peg to one asset using a different asset as collateral, there will always be a chance for under collateralization or depegging. Even if it is over collateralized by 10x, the collateral asset can crash more than 10x. Nothing is 100% stable (relative to something else) in this world.

One technique may last longer than other eventually they all will fail. The only full proof way any Stablecoin will survive in the long run is if you hold the underlying asset itself (USD) as reserve.

Example: USDT, USDC, DAI etc…

3 Likes

@MagicalTux

Tron is buying a lot of USDC which is probably the most respectable stablecoin right now, since it has VCs like Blackrock onboard. They’ve seen how using correlated assets is a dumb idea, especially in a bear market when people tend to sell and exit Luna and Bitcoin.

Mike Novogratz sold his Luna stash and so did Panthera Capital, probably their Bitcoin too putting pressure on the price and lowering the liquidity. So it’s a bad idea to use correlated assets while in a bear market. A basket of reputable stablecoins is better for reasons mentioned earlier.

@Deathstar_Daddy If you can get investors onboard to add liquidity that’d be great. But keep in mind Do Kwon tried to get buyers to stop the bleeding and offered them Luna in return but nobody wanted to take the risk. What would investors get out of it? There needs to be a reason for them to step in to bail UST. I think there is a lot of value in the exchange listings and in the community and user base but any large investor has to have a good reason to step in. CZ has BUSD that competes with UST. He may not wanna step it for this reason. So far he hasn’t offered to step in. He only offered to drain talent from Luna and move it over to BSC. Haven’t seen any other offers coming from him.

Exchanges need a reason to keep UST listed post snapshot. They won’t keep a token listed, a token that’s supposed to be a pegged stablecoin unless it can quickly recover the peg. They won’t wait months or years, so whatever plan anyone has, has to help repeg it quickly to stop exchanges disabling the UST pairs. They won’t let it trade while pegging is in limbo. So this needs to be addressed. First priority should be Coinbase that already announced they intend to disable UST. We need to present them with a viable plan of action.

Even though UST may be repeged nobody is gonna use it anymore when there are more solid and trustworthy stablecoins. In contrast, Luna Classic has great value now mostly because of the huge interest of crypto lovers

1 Like

Absolutely! Trust is the no1 factor when it comes to stable coins. The bank run happened because very few trusted UST even when it was working… now that it failed even a gambler would be skeptical to put his money in UST.

1 Like

Well actually using USD is not that much more of a safer bet. What happens when the USD looses value to other currencies? Just look what happened after the 2008 crisis. Sure it was still $1 face value but it’s buying power was severly reduced.

Backing it up with other coins like BTC, ETH, BNB, as well as add other stable coins like teather can work the key is diversity. Then added value of LUNA reserves to its network via tax on LUNA transactions. Overcolatorized and maintaining it’s decentralized state is the key feature for UST imo. This is the future.

There needs to be protocols put in place that prevent attacks like this and the forced depegging. Also what should have happened is the moment it was depegged the faucets should have been paused to prevent dilution on both sides. While it would be disruptive to the chains value it would be short term giving the team the ability to quickly recover and not be in the mess we are in now.

1 Like

Well, you answered it yourself… 1 USD always has 1 USD face value and that’s what a Stablecoin is supposed to deliver. People don’t buy Stablecoins for beating inflation.

Using crypto as collateral is a proposition that may serve well during bull markets but in a bear market crypto can lose its value by 90% of more… people will not HODL their Stablecoins and wait for the next bull market or a pump… they want $1 for their $1 at any given time…

I want to know how do you plan to achieve $1 peg when every crypto collateral held as reserve drops 90%?

That’s exactly why I feel UST was a P O N ZI / S C A M because they launched it in a bull market and crashed at the slightest hint of a bear market.

2 Likes

Not much more of a safer bet?

Whole point of UST is to be a stable coin and to maintain the peg so it is a MUCH safer bet.

Otherwise you risk depegging, especially in bear markets.

If you enter a bear market, like the one we’re in, a big crash in BTC or ETH can cause a major depegging event and an attack would be fairly easy to pull. A 3-4 X drop in reserve would end it. So most of the collateral has to be actual USD reserves or equivalent like treasuries or a very solid stablecoin.

3 Likes

And also those reserve held in LFG belongs to luna classic holder

I disagree. I think by rebuilding it, enhancing it, and adding layers of security will help set it apart from the others. Nothing wrong with learning from your mistakes as long as you do not repeat them. Tether is not without It’s own checkered history yet it’s currently the leading stablecoin.

I understand this mistake cost many small investors their savings and I am not making light of that. It’s for that very reason we need to fix this to not only help them make back some (or all) of their money, but prevent this from ever happening again.

This WAS unacceptable and was avoidable had the LUNA team reacted quicker and did not make those costly mistakes, like loosing billions of BTC for no return.

2 Likes

I didnt see any prove of selling the BTC reserves… i dont believe them. They need to provide transaction details…

2 Likes

They did sell some BTC but it was pointless… during depeg you need to be fast and allocate all your assets close to the peg because the longer it takes to restore peg more chances of bank run…

They had to go all in and not inject funds to push price from 60 cents to 80 cents… it’s game over.

1 Like

I do understand your points and not dismissing them as legitimate concerns as they most certainly are.

  1. Were in a bear marlet now so by rebuilding it in a bear market and repegging in this bear market is beneficial to it’s long-term existence as UST is padded at the lows so to speak.

  2. Technically you’re as right as you’re wrong. Yes it has $1 USD printed on it and in america that’s what it’s worth. BUT that does not mean it’s worth $1.00 in the real world. For example, when you have to pay $1.25 USD to import $1 value of goods that really means it’s not $1. This also drives up the price of goods costing Americans more which means they also get less for that $1. This is where we are now in the real world. Inflation is destroying life savings and affecting not only goods and services but affecting markets including the crypto market. Basically Tether is worth less than $1 compared to this time last year so technically it’s depegged. We just don’t see it as a dollar is a dollar right.

The whole premise that everything in crypto is based on fiat, and specifically USD is what is causing this bear market crash. The inflation crippling the world which is about to push us into a deep recession is causing this.

It’s not just about UST, it’s about the entire market. There needs to be a removal of dependancy on fiat valued assets. While we need it to buy crypto and there will always be some correlation between the 2 until there isn’t.

I’m not saying it will be easy, and in the end, if its not working I WOULD go to some kind of fiat based backing or combination thereof. Its worth trying but not at the cost of the community. Unlike Do Kwon I am humble enough to admit it’s not working.

With regards to your question the mechanism for ensuring pegging is there. That wasn’t the issue, it was how it was used and well not used, as well as a lack of saftey protocols.

When the UST was attacked knocking it off its peg, the system should have been paused (or at least throttled), to prevent dillution on both sides. This would have given the team time to restabilize the ecosystem and if necessary get some financial infusion. This is where we need a strong relationship with people like CZ, etc.

2 Likes

I agree and have been saying this. How does the value of nearly $3 billion evaporate like that. What about all that miney terraLabs was racking in from profits from LUNA <> UST transactions? I heard it was over $100 million per month???

1 Like