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

Luna/terra proves again that printing money backed on nothing ends up in having money that is worth less than the paper in which is written.

Hard-forking doesn’t solve anything, and rolling back the time is an illusion. Remove the inflationary contract from the old chain.

Saving the governance that backed this mechanism is like saving Hitler after ww2. Accept that new investors will diluite the actual governance.

Seek new capital, buy and burn luna.

Convert ust in luna, part of the conversion is burned, abandon ust.

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As you said, UST’s market cap is collaterized by Luna’s market cap. So, in tradfi, if you put collateral of to get a loan, once you default, you lose the collateral. In my opinion, Luna and UST together holds the Terra network, where Luna is like equity and UST is like bond. In theory, a company can have less equity value vs bond.

In tradfi world, a company can go default and continue operating. There will most likely be a debt restructure, where debt gets converted into equity. I think we need the same measure here, i.e. convert UST to Luna. In future, we can get this process in code, so it is transparent and UST investors should know they actually hold a kind of bond rather than cash.

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This is the best proposal, but it appear the team is likely going to just abandon ship, since there seems to be little to no communication or leadership.

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This is a truly brilliant proposal and makes a lot of sense. The Terra Team must be willing to listen and consider serious proposals like this which provides a breakdown of the mathematics and calculations to show why Luna spiralled out of control.

Yes we understand the difficulty of the time and how everyone is truly gobsmacked by what happened last night. But we must look at the lessons.

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As a UST holder, I do agree with this proposal. The current proposal that is about to get passed 1164 will just make matters even worse with all the LUNA being minted to accommodate all the bad debt (ust holders) that want out.
Is there a way to raise more awareness to this?

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I am fully aware of the magnitude of the crisis we are dealing with and what should be team´s main focus. I also know that PR is important if our goal is saving Luna and UST.

With that in mind the team needs to answer Binance CEO CZ last Tweet, this can not be ignored as the reach of a declaration like this one is huge and a good opportunity to show that Luna is alive and the team is focused.

Same thing about Do Know silence, how come big crypto Youtube influencers like Crypto Banter with a great number of daily views says that he spoke with Do Know today and still no word for Terra community or public declaration about the current situation and team efforts?

Public relations can not be forgotten in a serious moment like this one, should be one of the main pillars to build trust back.

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I completely agree. Silence right now is the worst thing you can do in this situation.

Asking for outside help, ie Binance and the likes of @Nikola-HydraChain etc makes more sense right now …

The issues facing luna and tfl are HUGE and won’t be solved overnight or just printing more money. I thought after shib realizing that printing too much money is a bad thing would be a massive warning to others.

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Binance just restarted the trading: LUNA & UST Trading Resumed | Binance Support

In theory that may be reversed if there’s clear strategy for restructuring.

FTX has not yet quit on the project, so there’s still some light at the end of the tunnel.

However I think the team is not making any measures.

Liquidity can be rebuilt once market cap starts to raise, and even a single market can be enough for a reboot. Especially if is a tier 1 exchange.

I can’t understand why no measures are being made.](LUNA & UST Trading Resumed | Binance Support)

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This proposal is sound to me.100% agree

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Why is there NO action!? Where is the action? The determination to DO something!? Why does it take days!? It smells more and more… Was this all a setup?

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UST is an algorithmic stablecoin and unpegging is highly probable. So regardless of semantics, math wise it is invariable.

Instead of hoping for it to never happen , the system should be built with conscious awareneess that it will happen and to have the proper mechanics on how to deal with it. The unpeg can and will be impermanent in nature if it is confined into comfortable collateral at all times.

Also if users are aware of this impermanent state and properly communicated, they won’t freak out of it happening and may even adjust their strategies to it.

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Is this being put to vote???

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In fact, I think there should be total supply of luna.

When the total supply is reached, the tax of each transaction will be increased based on the the depeg of ust, such 5% to 20%.

That could decrease the velocity of currency, limit the capital going out.

Also, if they really want to go out, then the system can recycle the bond (Ust).

It can reduce the bond of the system. Something like liquidation the debt.

These tax can redirect to all luna holder and staker in luna or ust immediately. It may increase the short term demand to luna.

But how to make the peg come back. I still don’t have idea.

Maybe redirect to anchor immediately, aUst holder.

The most wise proposal, how to handle the situation, so far. All the others proposal are focused on restarting the system that has proven to not work. This is the only proposal suggesting how to change the current detoriating system and make Luna stable once again with importance given to economic theory.

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This was one well written proposal - I hope it’s heard!

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If
Death spiral = dead
Reverse the spiral = not dead

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I support this proposal, much more sensible than the one presented by Do Kwon

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I support this.

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Much better than @dokwon solution

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The below proposal would be the most impactful first step for the community at large and would help save Terra’s reputation. And it would only cost ~1B-1.5B.

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