One way conversion (burn) LUNC to LUNA

Summary
A way to help both chains.

Motivation
Consolidate users to LUNA for those who want, allow those who want to stay with LUNC to rebuild.

Proposal
Allow a one way conversion of 100k LUNC to 1 LUNA. This will “burn” LUNC to remove tokens from that chain. It will also only add 65M LUNA tokens max, so only a small maximum dilution.

It will get more users invested in LUNA, provide a mechanism to get in if you missed the “airdrop”, and allow LUNC holders to lower the token count. Since the conversion rate is worse than the airdrop, I don’t think airdrop holders will complain.

It also provides a “floor” for LUNC — right now LUNA would need to be $8 or so to make the conversion the same as selling LUNC to buy LUNA.

It may also provide a path for TFL to want to make a burn mechanism for LUNC — ultimately they care about LUNA, so getting people to convert may be worth the small dilution.

6 Likes

Burning LUNC for LUNA was the only logical answer. A fixed ratio would have worked before the new Luna launched. Instead of an airdrop we could have just burned our LUNC to get the LUNA. Obviously people holding Luna before the chain halted would get a favorable ratio.

However now that all the coins have been distributed. I dont think this can work. As the LUNC goes up in value fewer people will be willing to burn it unless they got equal value of LUNA.

I dont think anyone would be willing to burn the LUNC unless it was based on the current dollar value of both tokens. For example as of this moment the ratio would be 51,779 LUNC to 1 LUNA.
Otherwise people will not be motivated to trade.

1 Like