Summary
I have seen so many proposals which tries to benefit the author in the cost of other stakeholders. Some require impossible tasks, like figuring out which type of coin holders should get more etc… As an investor, I think we should take responsibilities of our investing decisions, and take the lose we deserve. I propose here a simple solution which is cap the rate of new Luna mined per UST, say, at 1 UST for 10000 Luna. This should be easy to implement and will stop the death spiral.
Motivation
The death spiral problem is a design flaw, which can be fixed. The Luna block chain still has some remaining value which can be saved. The solution should be simple and easy to implement. I am sorry for people who bought Luna at say 100 USD, but I don’t think we can help them.It is hard to figure out who bought at what price and whether or not they sold it, or they sold it and bought back etc… For UST holders, it should be clear that there is no money in the system for repegging. The most fair thing we can do is to let the chain continue running with minimal changes, which benifit everyone compared to without the changes.
Proposal
Cap the UST-Luna conversion rate, e.g. say one can burn one UST for 10000 Luna at most. This way, there will be an upper bound for Luna supply and can save us from death spiral. I think this would benefit both current UST and Luna holders and I promise I will continue investing in the system if this change gets implemented.