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.
2 Likes
This totally needs to get voted up. I support this proposal.
2 Likes
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
5 Likes
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.
2 Likes
good proposal, waiting from Terra’s team to get involve to the discussion.
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In on it!
Given state of finances, the only path forward is to buy back and burn through fees generated by Terra. Then if an investment firm wants to take control, it can purchase coins on the market
This proposal needs to be considered, not only Fatman’s one.
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They have transferred their assets from BTC to UST ($1,847,079,725). Why not immediately liquidate the UST and initial the major burn. At the current price of $0.00019 with the UST balance they have they would be able burn all the excess supply (theoretically) and then some.
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Sadly LFG just communicated on its reserves, and 3.1 billion were spent last week to defend the UST peg, there is nothing left to allow a buy back
Only 200m left in lfg, most of the avax are still locking.
It seems like the fork of luna will be the good choice and find a VC to fund luna.
We can use the fund to recover the most of the ust holder.
~1.8B UST, not USD which is a quite significant difference.
In other words, each UST now has $0.024 in collateral. -98%
True, it’s sad but this possible solution is over…
I have just sold everything I had, I have no hope left. Good luck to everyone
1 Like
Given the current low capital reserves, buybacks appear to be quite stressful, which makes Disaster buyback fund seem more difficult to execute. Do you have any current thoughts on this proposal?
the best solution