[Proposal] - Better way to re-peg UST by burning lots of LUNA & UST - NO FORK

Governance proposals:


If you hold LUNA or UST and have lost a lot of money, then please read the below carefully and if you agree with me make sure to vote on the above proposals and write a comment on this post so it keeps showing up to more people if you believe this proposal is a win-win solution for everyone. Otherwise, please write down what do you think is the best option to reinstate the LUNA and UST values.

Please add your notes on this post so all of us get out of this distressed situation.


xLUNA, the new proposed governance coin, will be minted progressively by burning 20 UST or 63 million LUNA tokens to reduce the pools’ sizes and to re-peg the UST (check the Technical Example section below for the details).

By doing so, both UST and LUNA pools will decrease in size, which will bring their values up again and hopefully people can restore the majority of their initial investments.

How will this work? By Introducing the new governance token - xLUNA

  1. xLUNA will be the new governance token i.e. used to vote, propose, stake, validators etc.
  2. xLUNA will minted by burning the excess pools of both LUNA and UST.
  3. In order to make xLUNA worthy and tempting to stabilize the ecosystem again, holders (who decide to burn LUNA and UST and get xLUNA) should be considered as shareholders.
  4. Do Kwon and TFL should mint the majority of xLUNA, as they are the responsible entities (possibly legally) behind the failing algorithm, by burning the UST and LUNA.
  5. Dividends should be distributed to the shareholders yearly/quarterly or whenever to reward them for saving the project and the community.
  6. After regaining the community’s trust, TFL to make sure this situation doesn’t reoccur. This is out of this proposal’s scope.

How the new Terra ecosystem will work:

LUNA - Rewards for UST on-chain/off-chain swapping to retain the peg
UST - the Stable coin
xLUNA - the Governance coin

  • UST, and other denominations, will be swapped with LUNA to retain the UST’s peg. Also, arbitrageurs can make money and continue to support the ecosystem.

  • xLUNA will be swapped by either UST or LUNA, in case investors want to be part of the governance process.

After the crash, we saw that Terra Governance was spammed by the low prices of LUNA. Hence, this new governance token is a must.

variables and notes:

The below pegged and de-pegged values are just for explanatory reasons. The actual/best values should be thoroughly discussed with the community.

  • LUNA(p) = LUNA just before the UST was de-pegged
  • LUNA(d) = Price of the LUNA after UST being de-pegged
  • UST(p) = UST before it was de-pegged (1 USD)
  • UST(d) = Price of the UST after being de-pegged.
  • LUNA and UST to be removed from exchanges until the fix is applied. Only withdrawal to Terra Stations is allowed.

Technical Example:

the below prices were chosen as an example

1 LUNA(p) = $120
1 LUNA(d) = $0.0000019
1 LUNA(p) worth (120/0.0000019) LUNA(d) which is more than 63 million LUNA(d)

1 UST(p) = $1
1 UST(d) = $0.05
1 UST(p) worth 20 UST(d)

1 xLUNA can be minted by either:

Burning 63M LUNA(d)
Burning 20 UST(d)

Bottom line: By burning the LUNA and UST coins, and minting xLUNA instead, UST and LUNA supply should dramatically decrease and their values increase. Hence, UST will moving towards it peg value again :slightly_smiling_face:


  1. In regards to the proposed hard- fork solution, I don’t think this will work! Once airdropped, people, I am confident the “ex-believers” who will get the majority of the new coins, will sell their LUNA and UST and crash the system, again!!!

  2. In this case xLUNA goes for the community members who really wants to save the project, specially TFL.

  3. The prices of LUNA and UST stabilizes; specially UST, the main purpose of Terra ecosystem, as it is more tempting to burn 20 UST(d) rather than burning 63 Million LUNA(d) to get a weight in the Governance community.

  4. LUNA Supply at the moment more than T6.5, Market cap more than $1.1B.

  5. UST-LUNA and other denominations on chain swap to resume working.

This proposal can be considered as a draft for a better same-concept proposal.


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.sd
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 investors.


u could use a new governance coin that would get airdropped to all luna holders before de-peg.
This way you will keep the governance distribution exactly like it was before.

with this part i agree.

The price of current luna should continue to be set by the market.
For ust there should be a long-term plan to redeem it at it’s peg value.

the new xLuna price would be set by the market fine. It would be up to each pre-depeg luna holder to decide how much the ‘governance part’ worths for him.

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sorry for the late response, but the amount of posts on the Agora is insane!

I agree with you, however in order to dilute the pools of both LUNA and UST, I believe burring for the governance coins will bring stability and value earlier.

in the meantime i ve digged terra finder

2400 billions were swapped by only 41 addresses then all moved to exchanges :slight_smile:

Interesting. Can you please elaborate more on this? Can I see the blocks on Terra finder? I thought you need the tx or block id. Also, 2400 billion LUNAs were swapped to UST you mean?

So burning the new LUNA out of old LUNA while progressively restoring the peg.
I like it.

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P.S. I added two proposals on Terra Governance by mistake. If you could vote on both of them that’d be great.

I agree


Can you please tell us when exactly did ust first depeg ? so everyone knows where they stand

As per @dokwon it was around block 7544914. According to Tradingview, I would say May 22nd at around 07h00 pm BST.

Here s my detailed findings with those addresses

The issue is terra finder Makes it really really hard to trace transactions.

Anyway, from what I digged on it the final attack started on 11th May. Then a batch of fresh addresses without prior activity started to receive ust from exchange, swap it for new luna which they moved back to exchange and sold them pushing the price of luna down. The kept doing this getting larger and larger amounts of luna till the network was halted on 13th.

The terra name will be forever tainted.

Best to migrate over to the Juno network which created a dev fund for all of us.
check their site to just look at their tokenomics, they didn’t have a presale or VCs buying up their initial supply. Seems super decentralized for a good and fair community. The turnout on their proposals are amazing nearly 100% turnouts.

I see, thanks for sharing this.

Still no clear answer.

What to do with $UST held in Terra Station Wallet, then moved off-chain, now still holding off chain.

Transfer back into native Terra station wallet?

Those who held $UST in Terra Wallet, then bridged to another chain during the days of the collapse and are still holding $UST now off chain would get left out of one or the other pre-depeg or post-depeg snapshots.

It is important to get this info out to $UST holders.

In conclusion the question is, should UST holders who transferred UST to another chain during/after the de-peg transfer their UST back into Terra native wallet now before a launch snapshot?

Check this out article, it’s explanatory and well written. Next Steps for LUNA/UST Holders: A Detailed Analysis - Markets and Macro - Terra Research Forum

this one? Juno - Smart Contracts Zone (junonetwork.io)