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

Governance & Proposals
295

I have just seen that 1164 proposal. It’s terrible if it gets passed on (and seeing the votes, it will). That “gs390” person is either a bad actor, or a legit person who didn’t think of the possible consequences.

Nonetheless, if that 1164 proposal gets passed on there’s still hope. Another proposal could be made to decrease BasePool from 100M to 50M SDR or even less, or even 0 (short term solution).
Good thing is it can be reversed but people need to be aware of this and the reason to reverse that terrible measure with a new governance proposal.

After doing that, we could focus again on the proposal made by Nikola

296

  1. When k(LUNA):k(UST) >=1 and UST depegs <$1, shouldn’t the LUNA also compress to keep it fair?

  2. Having all the demand on LUNA side provides what incentives to hold the UST? There must be incentives to hold the UST like paying all debts in UST. Thus, interests earned from LUNAs pay out in USTs. Interests due on loans must be payed in USTs. Network fees paid must be in USTs. If there’s no utility to use the UST then there’s no purpose for the UST either.

  3. No matter depegged or not, the LUNA and UST should see each other in the same UST units to prevent one from wanting to exploiting the other is it not? Or are we now providing the right to Robinhood (steal from the rich) only for LUNA on UST and let UST cap drive increased value. What mechanics increases USTs value? Ultimately USTs needs to mint in order to pay debt.

After thinking this through this proposal boils down to wiping out the USTs in favor of keeping the LUNA only.

No we don’t agree to this proposal.

We need to create a demand for both LUNAs and USTs. We do not like screwing one to the save the other.

1. Network fees paid in LUNA, tax 0.1% as needed, let governance set the tax rate
2. Staking and bonds can only come from LUNA
2. All payments and debts paid in USTs
3. Allow printing always with no limits
4. Whenever UST depegs LUNA is priced exactly the same as USTs to stop exploitation

These create demands for both.

The LUNA must represents TLV + total future interests. That’s the only way LUNA appreciates value.

To be extremely fair, as per Terra’s contract, the network’s total value is $13B USTs + $2.1B LUNAs which means LUNA owners own 13.9% of the remaining assets. If we can find out the cost basis of $13B USTs for example to shave down $5B in debt obligations (assuming UST holders agree to this), then $13B - $5B + $2.1B has LUNA owners owning 20.8% of the remaining assets. If you’re trying to play magic numbers to wipe out all UST holders then no thank you.

297

I think ust-> luna minting has to be pegged to a% of luna Market Cap (luna tokens x luna price). If Market Cap is low → fewer ust can exit per block; if Market Cap is high more ust can exit. This way the variable becomes not price but time(preference), reflected in the ust usd price! 100ust per block f.i. are no challenge, but the usd duration of the ust pool stretches massively, thus depressing the usd ust price.

This way a ust holder WILL get his money back - confidence in luna decides when.

1 Like
298

Agree that communication is severely lacking and it needs to change. We need someone from the team to be literally live tweeting full time about what’s going on.

1 Like
300

Not a bad proposal at all, and it can possibly work.

I do believe that we need an extra factor and UST needs to have a mechanism that works as a buyback solution.

The reason any country can raise debt and in a way this is what UST does by using LUNA as collateral, LUNA would need to have a TAX % being taken to its foundation from any LUNA movement to support the UST buyback program or its reserves to maintain a $1 value.

An economy can never be sustainable or be able to grow if it doesn’t give something back, that is why we have so much hated taxes in our lives, but they do have a purpose, and it is to pay back the debt to safeguard collateral.

In my honest opinion, LUNA is a great asset and one that should be kept with safeguards and never be expected to be minting exponentially to protect a failing economy.

UST should also be kept but with more risk control measures and a way to sustain its economy, and have reserves in place to minimize the adverse effect on LUNA. It can not be minted out of proportion and needs a way to keep reducing its supply to maintain credibility if a max CAP isn’t applied.

this is my 2 cents, i hope it makes sense to everyone

1 Like
301

Keep in mind that Luna partially got attacked because we were publicly explaining each move. Not saying that the depegging would not have happened, but it helped to identify attack vectors (curve pool). Future moves are better to be done under the radar.

One example : if the market knows that you are planning to buy back luna and burn them, everyone is going to speculate big time to make quick money and get in your way of getting luna back to a more reasonable number in circulation. Same to take ust out of the market. You want to do it when everyone is in fear for the cheapest price possible.

At this stage, I see the lack of TFL communication as a good sign. They will have to improve crisis communication, but that’s for later.

3 Likes
302

Going back in time is not fair, especially when they could have stopped the machine at the moment.
So someone talked about legal consequences with Exchanges…
So they left the consequences for investors, RIGHT?

But it could have just stopped the UST/Luna 1:1 conversion or increased the spreed so as not to steal more value from the luna until it adjusted and they had tanked the spiral

If that wasn’t possible, I could have informed the possible plan to go back and we had all made the right decisions for that moment.

I remember seeing Doknow saying in the midst of the caus, that all was well and Terra would fight to rebuild.
Afina wasn’t to rebuild, was it to start over?

Didn’t say calm down, 'cause we could go back and start again

I made my decisions based on that information.

Everyone made decisions and some have Luna assets, UST still and others don’t, who should be harmed?
After all, this is not a market, can I return an apple that has already been bitten, in a normal market?

Did someone say in the project who said that the luna coin would have a certain value and would never bring harm?
But it was pretty clear that this UST had a certain expected value. even without reservations…
So if Luna was going down because they didn’t put their luna reserves in UST or aUST, even because it was on sale at that moment.
Whoever wanted to sell would lose out.

I believe we can rebuild Luna and UST from this moment on.

This can start with a long-term stake of UST, to remove whatever is standing in the way of the PEG. Many don’t mind waiting, and being part of this overcoming phase.

Repurchase the luna as is already happening, even by the old investors who lost everything, now they get a good amount for little money.

Put the machine back in motion with oracle at the ust price so as not to cause losses in fees to the running projects, or change all fees to luna.

Set the objective of burning the moon whenever possible.
Until the time of a new race.

The UST needs to go back to the PEG, but we shouldn’t force it now, we must create a base for it to never leave the PEG again and it will return normally.
Is the debt uncollectible?
And who has the debt, aren’t the UST holders? let them choose to keep the debt, go at a loss, or buy more because it’s cheap.

I read some proposals on how to adjust the machine, which I think are great.

Ridiculous is that we don’t try, if a fork happens, with re-distribution of bitten apples, that the community gets together and decides to take care of this project.

But if it’s to fight, inform the lunatics to activate the moment of OVERCOME that we are going to fight.

Upwards. That’s a great sense of value for the project.

After all, where are men on EARTH?

Yes, it is possible

303

Giving money is the easiest solution, but they just don’t want to give money, and they have to compensate LUNA with 20%, which is simply unreasonable. LUNA is a high-risk product, and UST advertises stablecoins, which is what everyone sees, so their order is completely reversed, and UST should be protected first

304

Amazing proposal with facts, numbers, plan, and economical laws and rules. The one Kwon suggested sounds like a middle schooler did it compared to this one. This has to be taken into discussion and be voted for if Luna and UST are going to be saved.

7 Likes
305

Everyone should spam this to @terra_money and @dokwon twitter accounts since it’s still being left unaddressed ,btw I’m already doing it

5 Likes
306

This has been my favorite proposal thus far. I would love to get you in contact with 0rigin.one who have also devised a proposal for restructuring. Would be cool to see you both work together. If you want their contact please reach out. See their proposal attached. I am unable to turn this into a new topic. I think overall, your team has their head screwed on the tightest thus far. Maybe this could provide some additional insight. 0rigin comes from banking, equities, and restructuring.

Terra Luna Restructuring concept.pdf (1.3 MB)

3 Likes
307

Guys check this. Luna token dev checker - “sent to burn” PooCoin BSC Charts interesting… maybe they are finding out whether it is possible to burn the tokens as CZ stated.

2 Likes
308

Still can’t believe there’s only 1% of a vote towards this after all the proposals I read… sort of losing hope with regards to any positive outcome… but we shall see.

2 Likes
309

First, there are too many rubbish proposals on it, the focus will be blurred.

Second, the consensus on this proposal is not enough, and more people are needed to assist in propaganda in various places.

1 Like
310

If minting is been stoped few days ago, and burning also. Then what is happening on that dev link then?

Maybe they are doing this on the dev side just to see how things would look :thinking:

312

Retail investrs don’t have much voting power. If the validators don’t get involved, it’s a lost cause.
So far, there has been only one “abstain” vote from the validator, but it trumped retail votes by 98.98%

313

Now you have to end the luna production process, its value has been reset, give up the top, you must now provide a new rescue plan urgently to those who hold it. You can buy Luna from the market through exchanges and funds and burn it so we can increase its value. In the case of many victims, emergency management plans are necessary. You have to give 1 dollar worth of luna to the top holders in their hands, then you have to burn the top token in their hands so that we can increase its value. If you’re thinking about the terra luna ecosystem and community, you can’t get out of this situation without putting your hand in the stone without adding value…

314

Definitely a realistic solution. The team must now react

315

Everyone should vote, mail the validators and spam the proposal link everywhere, btw I’ve already done it

316

I think validators would need to refil their bags if they would ever agreed to this proposal, nevermind that it’s the only right one, and the one that actually has potential to save the chain. If they fork it, it would be just to distribute funds, and it’s game over.