A very simple idea here. Currently the supply of USTC is more than 10bil. If we re-peg it to 1 USD, that means we need 10bil usd => We can reduce the supply of USTC to 1bil (example) by allowing only one way conversion USTC => LUNC. We can reserve 1bil of USTC (arround 30$ if we buy it from market) and then give 1 month to all users, they need to convert all of their USTC to LUNC (Sorry, i dont know how to make this happen. But if we can make it happened, definitely there should be a huge change).
The budget to re-peg USTC is less. Once USTC is re-peg, the ecosystem can be recovered accordingly. The burn progress of LUNC can go faster.
Implement one way conversion USTC => LUNC.
Sorry if my idea is fool, but i think it can brainstorm you guy to get to a great idea later.
converting USTCs to LUNCs will not remove them from circulation. the problem of inflation remains. It’s like printing lots of dollars and putting them on the market. What needs to be done is to eliminate excess tokens in circulation and stop printing tokens without any real value. The tokens must have a real value and a good use that allows maintaining a good economy.
No, It should be. LUNA is minted by burning USTC and vice versa. In the crash of LUNA last May, the USTC lost its peg because alot of person sell USTC. To keep its peg, TFL burn USTC to mint LUNA, USTC supply decreases therefore its value increases. But a lot of LUNA is minted lead to very high inflation.
I just read highlights of Ed Kim’s article (link below) where there is mention of dilution…is this basically the same as what this topic wants? Diluting LUNC to dry up USTC? Any idea what Ed Kim means by dilution? @ek826
Why as a UST holder who lost a fortune want my ustc converted to Lunc ?
How does forcing everyone to give up their USTC going address the gazillions of lunc coins ?
If you did do as you suggested, what does lunc offer as a blockchain to the world ? does it even have a use case at the moment ?
All good points, it could work but would need to also need to do a ‘reverse split’ where everyone gets 1 new lunc for say 1000 , it leaves a sour taste in my mouth as it affects me but something like this has to be done.
Sorry, i can not access the page! Actually USTC is the key of LUNC ecosystem. This is easy to understand that why we need to Diluting LUNC to dry up USTC. Additionally, LUNC burn can be more faster if the ecosystem is recovered.
I am so sorry if this proposal let you feel uncomfortable. I know that it is not fair to USTC holders if we do this. But we can think bigger, if you can convert USTC to LUNC that means you are contributing your effort to make LUNC great again. How about the remaining guys who only hold LUNC, we can contribute to LUNC by donating to devs team, burn LUNC by sending to burn address… To be honest, I also did these things. The blockchain should be decentralized but there should be sacrifice in some cases. In this case is to revile the LUNC. If we always keep it hardly “decentralized”. We may lost some good chances to revile LUNC.
USTC holders who held before the take down like me have been shafted , not only in the take down but any compensation since, now you are proposing to take whats left from them to satisfy yourself - no thanks