Like, retweet, and comment everyone you know who owns the tweet. Lets make it going!
Done mate tag them all
This was one of, or the (BEST PROPOSAL) I read in the entire TERRALUNA community.
BURN and REMEDY tax with each LUNA transactionš
I put it like this on twitter.
I agree! Excellent point!
It canāt. Unless the CEXs themselves want to donate some of the transaction fees which should be kept out of this discussion.
The burn needs to happen on-chain. Infact based on the comments here as well as other threads, the following needs to happen:
- Burn LUNA at a steady rate to reduce excess supply
- Open up staking at a steady pace to increase LUNA token demand
- Burn community UST ($1B) to reduce UST supply (Proposal #1188)
- Use BTC reserves ($1B) to reduce UST debt
A combination of above should help increase LUNA price and market cap, while reducing UST market cap at the same time.
Additional steps:
- Once market cap of LUNA > market cap of UST, resume on-chain swaps and the system as usual.
- Change the algorithm to ensure UST ā LUNA minting does not happen when market cap of LUNA is less than marketcap of UST
- Deploy additional security measures such as rate limiting LUNA minting, additional reserves, etc
UST will live. It might have lesser demand and lower market cap which might not be such a bad thing after all. UST demand can always be spurred in the future by offering a higher APY compared to other stablecoins to offset the additional risk.
He is not suggesting exchanges donate transaction fee.he saying put additional tax that can be burnt if that makes senseā¦i agree with everything else but buying luna is the way not ust i believe
I 10000% agree. This is by far the best idea Iāve come across.
Why this works:
Luna and UST are interdependent and work together as a system. UST is able to maintain its peg because of Luna and Luna makes revenue because of UST swaps. Without Luna UST is unable to stay stable and without UST, Luna doesnāt have a product to make revenues.There is absolutely no point in having an ecosystem where you kill your hero product. This simple solution can avoid the mess (current and future) altogether.
Downsides to this solution:
When market cap of LUNA becomes less than UST, UST will depeg. Some will argue what is the point of UST when it canāt be stable.
Yes, over the long term, as youāve suggested, there should be reserves etc TFL bought I believe $3B of BTC, so approximately $0.20 / UST worth. So everyone would be able to get $0.2 worth of BTC per UST as a backstop.
Imagine if they just bought $16B of BTC and promised $1 of BTC per UST (no LUNA minting). None of this would have happened. I would also argue that the $0.20 fractional reserving may prevent the de-pegs.
Added link to your answer next to the question in the thread ^^
Pretty sure safemoon has tokenomics with a sales tax that works on cex and Bonfire used to as well so there must be away to do it
Binance literally developed it for safemoon to get it listed on mandalaā¦so binance definitely has access to it
Updated the answer under the thread
Lets bump this post from time to time. If anyone has suggestions please post them here!
Replaying for @dfunk since he has replay limit
"I doubt this will prevent de-pegging. But what the reserves need to be used for is actually for LUNA rather than for UST. As long as LUNA marketcap > UST marketcap, UST remains 100% backed.
To prevent de-pegging, the minting of UST can also be capped to a certain percentage of LUNA marketcap. This will ensure that UST is overcollatralised rather than under."
This IS the solution
Yes to this. Best proposal so far that can salvage both LUNA and UST.
Crazy how things are moving so slow.
do it, can someone make a governance proposal? i will vote yes at once
It looks like a decent solution and fits for both holders Luna and UST
I would like to hear from the dev guys to comment and share thoughts about the possibility of this proposalās implementation
Seems to be a better solution than giving up everything. The existing mechanism just needed to be tuning not abandon. In time, things will be back to normal.