Great plan, we like it!
Lol. Nothing will come from this chain. It will not even get listed on centralized exchanges.
The highest priority is implementing steps 1, 3, and 6 because the current minting algorithm is broken. For example, hypothetically assuming 100% of the UST holders were begrudgingly willing to trade for new unsecured bonds with a lock up period, fix the market module’s exchange rate to $1 LUNA:1 UST, and each new UST minted must now be bonded (collateralized) debt. Bootstrap the UST side with some collateralized debt so that the loans enterprise can start borrowing. Perhaps seed the network with $50M in collateralized USTs since that is about the current size of the Anchor savings protocol. The unsecured bond holders would eventually be paid in full assuming TFL and the community does a good job increasing money transmissions and the utility of the savings and loan enterprise.
Note: Alternative to the unsecured bond with lock up is no lock up with conditions. As the network transactions collect taxes, 47% of the proceeds are fractionally collected from the bonded stablecoins to recover up to the total value of the unsecured bonds plus the interest, that anyone who want to cash out for less than the total value of their unsecured bonds can exit for pennies on the dollar.
- [min(total value of the recovery fund, total recovery fund collected) - amount claimed] / # unsecured bonds remaining = present value per bond claimable
with the remainder of the total liability redistributed to the remaining holders. The interest could be at 20-50% for the trouble. This strategy would reward long holders and slow down the de-collateralization rate of the people that want completely out.
For step 8, there is a current proposal for the Anchor savings to reduce to 3.5%. This rate is fine.
5% of the network transaction tax should be shored up by the LFG Reserves to buy up USTs to defend the peg. However a more interesting use of this fund could be to employed for market maker bots in CEX to provide liquidity and tame the prices of UST and LUNA so that they can be more predictable.
7, 9-10 are secondary. Even if no one agrees to invest new capital, no one wants to move out from UST to unsecured bonds, and there is no money left in the LFG Reserves, what we have is still the savings and loan enterprise. The debt reduction just helps to accelerate the process.
What happens between now and when the implementation is complete. Allow the open market to continue trading. Under no circumstance reverse stock split the LUNA on anyone. The taxes on daily volume will burn down excess LUNA over time. When the network is ready, to then establish a date and time of the unsecured bond sales to remove as much uncollateralized UST debt from the system as possible to strengthen the value of the UST.
Everyone must reject Do Kwon’s proposal 2 which we strongly recommend all to reject.
According to Do Kwon’s own math, 25+55% = 80% of 64T belongs to UST holders.
If we instead liquidate all USTs to LUNAs to start fresh, then the total supply of LUNA will be about 64T and the total combined value is about $2.6B. Currently there are 6.5B LUNA in circulation. The existing LUNA holders represent 10.1% of the network and UST holders represent 89.8%.
We can do it the hard way, or we can ask the community to willingly moved to unsecured bonds to reduce the uncollateralized debt, and do things the right way. Do Kwon has stopped all minting so it is currently impossible to vote against his decisions. Do Kwon is redefining what money means and will face international wire fraud charges. Do not let him ruin himself and the community.
Good topic. Sadly dontkwon doesn’t read anything, lol.
hello,here is my suggestions about a burning mechanism to LUNA
All it takes is to attract enough people to participate in painting activities and attract a large number of current luna owners to bid for the NFT, and Luna can be burning in a short period of time,Without incurring too much external cost
and these features are not complicated and should be developed quickly,
by the way,if you think this is a good ideal, please retweet it and let community developers to see it,or let Do Kwon or CZ see it(my twitter was blocked),or Initiate a vote if you can,thanks
Why are people not talking or looking at this solution to fix UST and drive value back into LUNA and remove the inflationary numbers. The algorithmic errors of the systema are the problem. This needs more looking at.
Creo que el equipo El equipo de Luna incluyendo a Do Kwon, deberian acatar, Escuchar La Propuesta de Fatman, Primo, El no se ha pronunciado, solo Ignorado todo lo que la Comunidad Piensa, y Sencillamente, Hacer la Propuesta de Fatman Primero, Luego, El proyecto de Hacer un Nueva Terra Luna v2, sera Posible, Incluyendo Solo Haciendo NFT a para Apoyar el siguiente Proyecto, Y teniendo En cuenta, que Esta comunidad, Estan Fuerte Como la de BITCOIN, Y ellos se estan dando el lujo de perderla,
Hay mucha Gente Mala En youtube, e Informacion, COn la Propuesta de fatman, arreglan la credibilidad, confianza, y haran algo altamente considerado, y van a tener la comunidad para siempre, no hablo de 1 personas sino, millones, incluyo luego pensar en un rescate de empresas, pero urgente es la comunidad.
Excelente proyecto Bien pensado!, pero la Comunidad, Quiere la propuesta de fatman primero.
The burning UST concept aims to reduce the debt burden by looking for whales to invest money, however in distressed markets the whales prefer buying assets near free rather than investing money in an enterprise where their capital is used to pay down debt and will not grow for some time
The TerraBuildersAlliance concept reallocates Do Kwon’s Revival Plan 2 shares to community developers and almost completely disregards the existing debt obligations to LUNAv1 and USTv1 holders
Do Kwon’s Revival 2 distributions:
The native stablecoin concept emphasizes that without a partially or fully collateralized stablecoin that the Terra platform is no different than the thousands of useless crypto coins
The compensate UST/aUST first concept acknowledges that any redefinition of money debt is a crime and that would halt the project so senior debts must be paid first to save the project
The key assumption is that Do Kwon and team have the capital to pay senior debt. We do not believe the organization has much capital left.
The first order of any default is a change of control from executive management to a bankruptcy trustee who acts as a fiduciary for the existing shareholders. This would in effect restore the voting rights of the UST holders as none of the $13B or so people are able to vote against any actions that goes against their best interests. The benefit of putting all LUNAv1 and USTv1 to vote is that they can actually vote on a debt reduction plan because at the moment it is unlikely that anyone will receive any money back. This is in effect debtors defaulting and the bank agreeing to a write off with conditions.
We were disappointed that Do Kwon failed to reach out to the community to acknowledge his error and work with the community to salvage what is left. Not everyone holding USTv1 wants Terra to fail. The idea that money transfers could one day be low cost and unlimited, and loanable is worth saving but not in its current incarnation, nor in any of the reboot proposals from Do Kwon and TerraBuildersAlliance.
The only ulterior motive, unless Do Kwon could provide assurances otherwise, leads the astute to believe the proposals were geared towards rewarding his most loyal VCs and developers. Is not getting paid in cash enough that all employment must now be rewarded with free shares of the enterprise, and is not using bonus money to buy LUNAv2 at low prices not enough? It does not make any sense to us either. It certainly feels like entitlement for free shares without actually risking personal money to support the network, or more subversively, in effect, paying to encourage developers to run PR campaigns on social media.
If Do Kwon goes to jail, then we will discuss with our capital investment partners to seek whether TFL would transfer their IP ownership to us or to a community foundation. The key issue rests with whether the TFL and LFG are willing to accept a change of control for the benefit of the community as we still strongly believe in its potential enterprise value.
Whether TFL/LFG have money or not - does not matter. Kwon et al under criminal prosecution risk in several countries. New project is unlikely to be successful in such environment. Project founders need to secure funding (personal savings, fundraising, etc).
The new project has to be made successful and transferred ownership under a different brand of course. We do not have any confidence in new reboots without solving the fundamental issues.
The reverse staking concept is essentially earning LUNA as interests for Anchor savings deposits and converting them into UST to reduce the LUNA supply
A simpler approach is to have all network exchange fees taxed at 0.1% paid for in LUNAs. Over time the passive tax eats away at the total LUNA supply to raise its value, and new USTs can only be minted by collateralizing with stablecoins. In effect, this burns down LUNAs at the same time the collateralization of USTs goes up. A win-win.
Well yes but in my proposal we are also creating a new stablecoin which can hold its own usecase and bring in more transactions.
I agree however to a transaction fee of 0.1% to burn the current supply as well
Our concern is any new stable created that is not backed by actual stablecoins has very low confidence of succeeding. After this level of blow up, most people will be pretty hesitant to touch anything Do Kwon and Terra Builders Alliance ever creates again, and most likely would need regulatory approval moving forward. These guys are planning to erase all debt obligations to reboot Terra v2 to be all LUNAv2 at first then figure out how to create a USTv2. They are doing this to “wipe out bad debt”. Things make a lot more sense when you read everything that the TFL and the TBA have said from the perspective of major owners that have lost their wealth. See for yourself. The Alliance were allocated at 20% at genesis. Of course they want all of their wealth back and thus they are heavily pushing all over social media for people to accept the best deal for themselves and a pittance for everyone else. They have people thinking that if you give the broke anything they will take it and like it. This is how you destroy communities. The TBA is fine with this because it is really Do Kwon that goes to prison if there is any crime. They do not see themselves as co-conspirators to a elicit a criminal enterprise using the governance voting without all actual LUNAv1 and USTv1 holders in default representing 100% of the remaining assets to weigh in on how to restructure debt that cannot be paid with the assets they currently do not have.
The select a new representative concept seeks to quickly assign a representative for the LUNA “classic” to take control of communications with established central exchanges so that they will recognize the de facto new management of the old project rather than the new project
This is a brilliant suggestion because Binance already said they would only support a burn.
Nov 15, 2018 Binance probably will not replace LUNA with LUNC
May 13, 2022 Binance says (Terra) cannot mint out of bankruptcy all the time
May 13, 2022 Binance requested TFL for response but they were not, says TFL behaved unprofessionally compared to Axie Infinity who had a plan and remained in constant communication with them
May 14, 2022 Binance advises do not abandon the supporters by forking, just burn, and transactions cannot be voided
May 15, 2022 Binance statement:
“5/ The last few days, we tried hard to support the Terra community. In my tweets, I am simply pointing out the potential issues from my understanding. Minting, forking, don’t create value. Buying back, burning does, but requires funds. Funds that the project team may not have.”
What does Terra leadership do? Burning everyone because we know they are trying to regain their own wealth.
Wow this proposal is a real gem.
About Do,if he want v2 to success he need to rebuild his reputation .it is superbad right now.
How can we make this proposal happen!