[PROPOSAL] 💸 4 proposals to save the ecosystem, following the principles of free market, and with a pinch of charity

I have been reading quite a few proposals to save the ecosystem, and they all seem dire to me. We are missing a point here: The goal of cryptocurrencies is to create a pure free market.

If we fork and leave the current ecosystem, it will lose all value. I think it should be the last resort, and not done for now, as the algorithm has room for improvement (even if it takes years).

The design flaw has been and will be that it is not prepared for a massive capital outflow. My proposal is to improve the system little by little, taking into account these situations and based on trial and error, so that the people who believe in the ecosystem continue in the project. If confidence is regained, I am sure there will be a rebound. And if the 1:1 peg is recovered in a stable way (even if it is over time), and safer than before, I am sure that confidence will be recovered.

To recover the 1:1 peg, it must be burnt as much luna as possiblñe, and for this, I’m making the following proposals:

:chains: 1) Tiered repayment

The proposal https://classic-agora.terra.money/t/proposal-tiered-repayment-1-1-usdc-refund-to-all-ust-holders-up-to-a-certain-cap-per-wallet -using-lfg-funds-favouring-small-wallets/6471/12 seems correct to me, everyone is free to use their ust as they want, and if LFG has +1b ust, they can do with them what they want. My advice is to put in place a system, capped at $50,000 per address, where people can claim the equivalent in USDC or any other stable.

As this is a free market, this would be done out of charity and by LFG’s free choice. But it seems correct to me, and it would help to calm all the FUD that is emerging in the community lately.

I would also implement a system, in which, if you want to receive the refund of $50,000, you must deposit your ust tokens in a contract, through which they are burned.

:speedboat: 2) Speed up the system

Approve the proposal that allows on-swap changes to work faster, as we have seen in Terra Station .

I think this was the main mistake and the reason for the bank run, not being able to burn tokens as fast as the market required, causing panic among token holders and weak hands.

:currency_exchange: 3) Implement an on-swap commission system.

Approve a system where commissions are charged for performing on-swap trades, UST->TERRA as seen in [Proposal] BURN and REMEDY fee with each LUNA transaction 💊 - #665 by Entaum.

The main problem with terra is that full UST amount can’t be paid with terra, so it would only charge this tax when ust’s market cap exceeds terra’s.

It is clear that we must avoid ust to be traded in the CEX. So, as long as this situation lats, all kind on transactions on UST chain MUST be rejected. This would cause people who wanted to liquidate their investment to be forced to use the on-chain swap, since they would not be able to make deposits or withdrawals in a CEX.

Ust holders would know that they may be subject to this kind of playpen, and centralized exchanges would lose interest in projects like this.

When the peg is restored, transaction validation would resume.

:balloon: 4)Convert UST into an inflationary currency, until the peg is recovered.

As long as there is no 1:1 peg between terra there is no incentive to hold. If you provide an incentive > 25% for ust holders, you cause a large number of people, believers in the community and the ecosystem, to keep their assets in ust, and not change it for luna. Once the peg has been restored, this system should be gone.

It is clear that the way is to make a better currency, following the principles of free market. It would take time but it is the path to follow to re-gain trust. I know that a lost of people hasve lost money (I am included) but I am not in crypto for charity. Sorry. I am here because I am believer of the ecosystem.

We should have been prepared, and the algorithm should have controlled this type of situation. Now, move one, fasten your seat belt, and let’s improve terra together. Maybe one day, we will have one of the best protocols in crypto, and this is just a bump in the road. Trust will be regained if UST is restored. People would have learn to not bet their life savings. And the ecosystem will be stronger than ever

The problem is LFG has only 80 million $

how about this suggestions? also with a pinch of charity,but it may not be all charity,participants may also create value and make money,

1 Like

Whatever is to be done needs to be done straight away there has been to much time wasted action was required on Saturday not Monday.

i think there is something here, +vote