The best way forward is inflate out of the problem. The current LUNA supply is 7 trillion, when the supply was increased from about 350 million to 7 trillion, the market cap dropped to roughly 10 million for a few minutes but rose back to 4+ billion within a day and currently at around 1.5 billion. There is value in the Terra ecosystem and it will be resurrected to prior glory if and when the previous believers and new members are rewarded for their trust. So, I propose the following:
Increase the total Luna supply to 1 quadrillion , distributed among:
300 trillion (30%) to UST holders before the depegging event.
300 trillion (30%) to Luna holders before the depegging event.
150 trillion (15%) to UST holders at the time of this airdrop.
150 trillion (15%) to Luna holders at the time of this airdrop.
93 trillion (9.3%) to community pool to fund future development.
7 trillion (0.7%) existing supply.
Depegging event : To be equitably fair, we must ensure at-least a 5% tolerance, so the snapshot has to be taken based on May 9th 22:00 UTC holders. This was the first time UST dropped below 95 cents on the dollar and never recovered above 95 cents.
Note: The distribution will need to be proportionate to the holdings.
The above plan would ensure that people who were Luna/UST holders before the death spiral have a significant stake (60%) in the future value, they almost have zero stake now. A lot of new investors are hoping and betting on Terra survival (Today’s Luna volume is 9 billion USD) and they would be rewarded and potentially turned into long term holders. If we are able to accomplish these two, the UST will automatically peg to a dollar. Remember folks, Luna at an all time high had a market cap of 41 billion USD, at the bare minimum we need only less than 30% of that value for UST to re-peg to USD (11.2 billion UST in circulation) and with this proposal, it is possible to get there within weeks and most importantly, not leaving anyone behind!
Longer term - I also think there has to some limit to UST/Luna minting restricted algorithmically tied to the market cap to ensure there is enough liquidity in the system for even say 50-60% withdrawals. I’m not sure what the numbers will look like but it has to in place to prevent future crashes.
Short term - Have a tiered lockup period for both UST and Luna after the distribution to avoid another crash.
Tier 1: < 1 million Luna or 1,000 UST - No lockup
Tier 2: < 100 million Luna or 10,000 UST - 3 months
Tier 3: < 1 billion Luna or 100,000 UST - 6 months
Tier 4: < 100 billion Luna or 1 million UST - 9 months
Tier 5: > 100 billion Luna or 1 million UST - 12 months
This is ridiculous!!!
The only solution is to de-couple Luna from UST, burn the supply, remove minting and make it public domain as a community coin then she can become Bitcoins Queen!
The only way to “resurrect” the community is to keep existing holders and provide incredible opportunities for new investors. If the plan is to provide an exit strategy for previous holders, then it’s “salvaging”. We have both paths in front of us to choose from, obviously resurrection isn’t guaranteed but another try, it may very well turn out to be that the worst outcome in resurrection is much better than salvaging.
If you add TX fee, you will lose the volume you have now. All trades now are performed by speculators only. If you add to their risk another 3% you will kill the volume. This can’t work unfortunately.
This is a VERY interesting idea.
If you add to it the opening of pool v4 with all funds needs to be there to prevent this from happening again, this can actually work.
I need to think about this further.
You wrote me in my post, and that’s how I got to your proposal: