[Proposal] 8 Steps to Save Luna Now - Economic Refactoring Proposal From Industry Professionals

I agree with you that builders are to be incentivized to stay.

But a few things:

  • you value UST at 1 USD, but that’s not the case today, it is closer to 0.15 usd. Meaning the amount required to buy back is much lower. However, as soon as you start doing this, ust will increase in value as people speculate. But as people speculate, it provides more opportunity for people to exit at a more affordable loss
  • you are clearly showing that any kind of compensation will be ridiculously small compared to what people lost. In that case, I would argue it is better to invest this money in getting the machine restarted, and progressively creating value to get back to the peg at some point
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Yes, please help to spread the message. UST holder cant back full value. This is a reality and basing on very optimistic projection that they still have 2bn reserves left.

This reserves also belongs to the luna holders.

The pie is too small for an impactful split. Rebuild is the only option they have left.

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Btw if that spammer jumps on here ignore them. Someone’s been writing posts intentionally to get flagged which if enough then threads get closed and censored. Ignore them instead let them up the reply count while bumping the proposal up at the same time.

I agree with this proposal.

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This is the best proposal!

Good propose, but too many sound. Choose direction for better progress…

they, the old leaders gradually to the disaster of Luna are looking for a fork to regain ownership after running away and fooling all the investors and former holders. They continued to trick new holders into trying DCA to save Luna. Get rid of the fork option immediately with all your might, and boycott Luna v2 if it ever comes out because they’ll be printing Luna 2 and taking advantage of the community again.
The most important question right now: Where are the Bitcoins and Luna’s reserves and the Luna leaders are responsible for the destruction of the reserve and decided to print Luna on these investorsi

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Hi Nikola,

I have read Fatman’s proposal and compared to yours his looks like its written by 3 y.o. kindergarden kid.

Regarding leftover funds. I guess team or governance should use all money they have left to stabilize, fix and revive ecosystem, rather than directly reimburse users.

There should also be a plan in motion, once project is stable again, and self sufficient, to reimburse victims slowly over a longer period of time.

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Finally, someone who gets it.

Luna is everything. And take this from someone with a large chunk of my portfolio in UST and 0 Luna. The selfish me would love to get $1 for each UST but that’s not how this works. UST is just a portion of the Luna MC. If I’m being honest I didn’t quite understand this concept when aping in but that’s on me.

I have zero sympathy for the “Luna hodlers are speculators, let them burn and save UST”-mentality. UST hodlers are equally, if not more, degen. Again, if you (like me) didn’t get that when buying UST: THAT. IS. ON. YOU.

In my opinion there are two ways out of this mess:

  1. Capitulation: Send all available funds to UST hodlers ($0.1-0.2 per UST at best?). Shut down Luna and UST for ever. Everybody lose but some get a small consolation prize.
  2. Revival: Blow new life into Luna. This is the ONLY way, if there are no Luna then there are no UST.

I vote for 2.

There are of course lots of considerations on how to go about this. Personally, I think all UST should be liquidated into Luna at the current price (dollar price adjusted, 1 UST bought for $.3 is worth 30% of 1 pre-depeg UST or $.3 Luna). To me it’s the logical thing to do on so many levels, the only guarantee we got when buying UST was that: UST are redeemable for an equal $ value of Luna Let’s stick to that promise.

Then all effort can be put into rebuilding Luna. If an algro stable should be one of the products, great. But let’s build it from the ground up and give all Luna hodlers a fair share.

Luna might be hurt but it can be revived. UST? Not so much.

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get this thing voted for Terra Station

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I am with you, but Terra without ust is just another L1, not sure it would have any competiting advantage.

I might be wrong, and maybe Terra can thrive by leveraging usdc or btc, but we would lose a large part of luna’s value proposition

I agree with you. UST must be kept, but collateral must be diversified.

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This totally needs to get voted up. I support this proposal.

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I still like this proposal. Wanted to add is there perhaps an issue using bLUNA as collateral in Anchor since it used to borrow UST due to their deep relationship?

On chain, 1 UST can always be swapped for $1 worth of LUNA, even if that 1 UST is above or below peg.

In the death spiral bLUNA was devaluing on chain while UST borrowed against it DID NOT devalue on chain, so…

This lead me to wondering if bLUNA should represent stake in Anchor in a different way, rather than collateral. Perhaps keep for more ANC emissions/governance power. It already has a 21 day lock up for unbonding (unless instant burn at a significant % loss), and could become the sole way ANC is issued (already emitted ANC still can be traded).
Or bLUNA could replace ANC token and staking emissions still go towards the reserve.

The Anchor borrow mechanism then would require purely other assets than bLUNA. Sorry off topic some and later time on Anchor forum when Im not in mid thought middle of the night.

@Nikola-HydraChain you should reach out to the validators, only one validator voted…

they have to fulfill their duties as validators and vote… regardless if they like the proposal or not, the vote should be mandatory

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Know how high staking emissions are right now? NOT forking will give LUNA a nice upside from current price, validators ESPECIALLY INCLUDED. I think everyone gains. Anchor depositors should get a recovery plan and there’s a lot of smart ideas about that too. All the degens and CT influencers already have a legup on knowledge of the protocol now with huge stacks of LUNA on the cheap and are here FIRST USING IT ALREADY with muuuuch less learning curve than new comers. You SEEN Spec Protocols LPs? Go look, face melting. (edit: rate so high helps allow me to be my own exit liquidity if needed and be ok being others’ too) Those degens and CT influencers are able to teach all the thousands of new LUNA holders out there how useful LUNA and UST is to use on the dApps on Terra chain. Protocol use has a chance to rocket. Who loses here?
Edit and the current exposure and hype and even meme coinishness trading is the biggest free marketing ever if you call currency meltdown “free.” Jeez, zee LUNAtics bet all in, and come out winners, I think, if we don’t fork and do right.

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So with the news that LFG is more or less out of funds, this proposal makes even more sense

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Agreed, a stablecoin is key for the ecosystem.

However, my opinion is that we should start over from the beginning and do it right this time (as per the proposal). UST, not LUNA, is the liability here. If the liquidated UST hodlers want to convert their Luna to “UST2” they are of course free to do so. The harsh reality of the situation is that the supply of UST far exceed the utility as most of it was just idle printing money. Therefore, I can’t imagine how the conversion rate between UST and “UST2” (via LUNA) can be anywhere near 1:1 right of the bat. It’s a matter of simple supply and demand economics.

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good proposal, waiting from Terra’s team to get involve to the discussion.

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