Just doing my part to push this idea to the top because it is good and has my support! I especially like the idea of changing Anchor rules to require locking bLUNA. If UST wants to stay in the system earning interest, it has to do its work to make Anchor stable!
This is by far the best proposal so far, and, if you allow me to add I think we should also make a priority to save/rescue/bail small holders.
On this proposal – [Proposal] Tiered repayment: airdrop USDC/USDT to small UST holders on Terra
@FatMan proposes to save/bail out small investors. 80+% of the UST holders would be saved with “only” $1.5Bn.
And I make a few direct quotes
Advantages of paying small holders first
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Reduced sentiment impact: given that small holders make up the vast majority of the community in terms of numbers, it will greatly improve general morale and sentiment since over 80% of Anchor users will be made whole
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Easier to manage remaining creditors: once most of the creditors have been sorted out in a lump payment, the remaining creditors (institutions and multi-billionaires) will have greater mobility as solutions can be discussed and executed in a tight-knit group
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Most effective use of funds in the interim: with only $1B or $1.5B, the majority of affected users in terms of numbers can be made 100% whole instead of making all users 10-20% whole.
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Outstanding aUST: 8.3 billion
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The top 10 Anchor wallets own 26.824% of all aUST (!!!)
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There are a total of 256k Anchor wallets
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The top 1,000 Anchor wallets own 82.37% of all aUST
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The poorest wallet from the top 1,000 has 955k aUST
That being said, I’m ok with waiting to get my funds back. As I wrote on Reddit:
To regain the trust we need to save the small UST holders immediately. Accounts with up to 5,000 UST prior to the de-peg event should be able to redeem immediately with a 1:1 ratio.
Accounts with 5,001 to 10,000 UST next. As soon as the smaller accounts are saved and rescued these accounts will be able to reclaim, followed by 10,001 to 15,000 and then 15,001 to 30,000 UST.
In addition to this, I propose we give every user an option of a scheduled pay-out and I’m going to use myself as an example.
I had 17,000 UST the moment the event started and I don’t want to redeem everything at once. Let’s say I agree with a monthly schedule. My UST would be then redeemed at a 1:1 ratio with an early APY equal to the United States Federal Reserve basic interest rates.
Then LUNA burns the redeemed UST and also burns LUNA with the fees generated in the network. If we regain trust the whole ecosystem will regain life and we will be able to burn LUNA and increase its price while working and developing the network and increasing its worth.
Also, if a loan is granted using LUNA’s future income as collateral this loan should be used in a 70:30 percent ratio to buy back and burn LUNA and bailout all the small holders.
8 Likes
Guys pull people to this proposal we need to make this one implemented. Its a sound plan and best we’ve heard so far and by far. We need to rescue Luna
7 Likes
I think this is a viable path and will return the trust of faith if everyone can be saved with it sooner or later! By doing so, the entire ecosystem would also grow big in people’s eyes to be brought back from the dead! If I understand correctly, both UST and LUNA owners would do well sooner or later?! 
13 Likes
After further review & analysis, my peers and I agree and have unanimously concluded this is the best strategy for dealing with this situation.
10 Likes
I like this idea. I think there clearly is an ethical issue with UST holders losing out but to keep the eco system going, Luna must be saved. Remaining UST must be used to stabilise LUNA, transaction fees must be used to build up a reserve to collateralise a new stable coin and UST holders compensated overtime. In fact, transaction fees can be used to build reserves and compensate UST holders over time. LUNA should become inherently deflationary. When such a massive network exists, a bridge allowing other stables to work within it should be good enough.
4 Likes
something that makes sense.
5 Likes
why is this not being raised? first time in several years that is logical
6 Likes
I like this proposal. I do think it will require massive amount of work and it is not clear how things will shape up over time, notwithstanding the fact that the global market might be facing some issues in the coming months as well.
I mean, we are talking about a couple of months until all of this is executed, at least.
I lost around 10k before selling everything and then shifted all what I could salvage onto UST… So I guess people like me are not part of the plan either ways. I’ll be waiting for things to slowly progress before jumping on board again. That would be a great comeback.
The ecosystem is really massive and it’s sad that if this project dies, all its fellow projects will die out too.
I suggested they stop the minting of LUNA when UST was depegged for quite some time. I didn’t understand why the whole focus was on saving UST, I did believe they should have stop the bleeding right away, but I followed course. As soon as they halted block production, it was clear everyone was rushing in to save LUNA.
I’m not certain whether they will be able to execute this plan or not.
In the meantime, I will be following this topic very closely!
6 Likes
I support this
5 Likes
I’m in on this too! I think the ecosystem has too much value that can’t be measured with money at this point. And the proof is that you showed up with this proposal to bail the network out. All big CEXes have LUNA and UST listed. It was just starting to compete with other big stables. That is a huge endorsement! That in itself is enough to revive this, as long as there’s a clear and sound way forward.
Also all the devs and builders in the ecosystem. If you kill UST, LUNA will simply be another L1 competing with all of the other big guys that are far ahead of you and don’t have failure written on their backs. If you give up on UST you admit that stablecoins have failed entirely.
3 Likes
Almost all crypto projects should read this post, hence it is relevant not only for Terra.
Imho first worthwhile post on crypto economic I ever read!
You sir litrly showed how true the meme “When you let the devs do the economics” is!
6 Likes
If you wish to brag about running a decentralised environment then listen to your community, isn’t that the whole point, otherwise you are just a dictatorship?
This proposal is actually logical for everyone. Right now after being in Crypto since 2011 I have seen many scams, many fuck ups (excuse my language) and the early days was about connecting the crypto world with the ‘real world’ so that everyone could find a reason why crypto and blockchain would work to replace the bullshit that exists. We have someone here who is ‘real world’ proposing a solution that makes total sense. Right now I am thinking the people behind this only give a shit about their wealth rather than the passion that community members supported the team for (yes they wanted to make money) but the team counts. So somebody with a social following grab this proposal and take it public unless we live in a dictatorship?
7 Likes
Oh yes, they should totally review the way they communicate on twitter. 95% of the people don’t even grasp a word of what they are saying. A clear example is the pump that happened on LUNA when they halted block production to restart with new parameters.
When it resumed, it kept pumping despite the massive inflation occurring. Not everyone has technical skills, so having a more social media-friendly communication is KEY during such events.
And also, please add to the proposal that a change is required in the voting process during such dramatic times. Waiting 7 days until a change is in effect was clearly a major issue here! This should clearly be added to the proposal!
1 Like
We are almost at 7T minted coins, but it’s ok. Memes and stupid call-outs are more important to be proposed first.
GO USA ! xD
- UST is no longer linked to BTC or LUNA. Should be pegged to more stable assets such as other stablecoins or USD, USD treasuries.
- Establish UST flexible savings mechanism. Set a flexible interest rate. When 1UST is less than 1 USD, the annualized interest rate of savings is 20% or higher; when 1UST is equal to 1 USD, the annualized savings rate is the market rate, such as 6%.
- When 1UST=$0.1, use the reserve funds, and buy a large amount of UST for $0.1. No additional USTs will be issued.
- Restore the Terra ecology, gradually destroy the additional luna, and promise to control the total luna circulation at one billion.
1 Like
What annoys me most about reading all the posts is those who feel entitled to ‘i bought and held early so I am first’ I have held from early days but tbh that isn’t the point here, that is so wrong simply because if coins are released by the ‘plan’ which they were then everyone should be entitled wasn’t that the plan behind the startup?
Regardless, many projects win and fail, fail majority of the time is because they just wanted to raise money and be happy then don’t do anything after that, why bother?
Set a plan in place, I have many questions first being what happens when UST depegs, hence the more LUNA that has now not worked.
Next…
- What is the objective - fix the problem ( may be days away ).
- build a communication plan that enables all to be informed of ongoing events.
- Short term solution - obtain loyalty and trust with communication.
- Long term solution - obtain solutions that includes everyone who is in the environment.
- FYI, Any Fork without inclusion of all will fail, this needs full vote of support from all areas.
I personally do NOT support a Fork because I believe in communication if the ‘team’ is genuine, we will find out but the above proposal is so logical a few things can be tweaked but for god sake get this out to the world, and sort out the communication without making it look like a dictatorship.
My 3rd Post so has to be an edit, IF YOU KNOW A SOCIAL MEDIA GURU GIVE THEM THIS PROPOSAL LINK - PLEASE
3 Likes
at least they have stopped, line in the sand - now get the above discussed
1 Like