[Proposal] Contact exchange investors to contribute their trading fee to the revive process and implement burn mechanism on exchanges as well as on chain

Summary
Binance Labs and Coinbase Ventures have invested in Terraform Labs.

As cz said, TFL and LFG may not have sufficient funds to buy back and burn and restore UST peg.

Motivation
Buy back and burn LUNA, then restore UST peg is the only way that Terra can regain trust.
UST still has 11B in circulation (~1B in community pool) with a price of $0.18 (at the time by writing this) which is ~1,980,000,000 USD.

Proposal
The first step LFG should do is to tell us what they have done with the BTC funds, this is the only way they can regain community’s trust.

Binance has a volumn of 4B of LUNA/BUSD today (5/15/2022), this is equivalent to about 3,319,051 BUSD(4B * 0.00075) trading fee per day.
Binance had a volumn of ~50B/day of LUNAUSDT future in the past few days, which is equivalent to about 17,500,000 USDT(50B * 0.0003) trading fee each day.
So far Binance had approximately 20,000,000 USDT of trading fee each day for 5 days, which is
100,000,000 USDT.

UST/USDT pair should not be counted as they are trading without a fee on Binance.

btw, binance has removed LUNA futures so that we cannot view the trading history.

I have not looked into other exchanges, if anyone can provide information please comment below.

What I propose is that the exchanges can take a proportion (lets say 25%) of their trading fee earned by LUNA to assemble a new LFG which consists of board members from Exchanges(eg. Binance, FTX , Coinbase …) and TFL (if they tell us what happened to these bitcoins).
These fees can be the initial collateralization(better than none) of UST and we can have the wisdom from the most respectful people in crypto industry to join the revive process.
Or these fees can be used to buy back and burn LUNA and when price return to a certain point, we will have regained trust from the industry, a revised fully collateralized UST can respawn from the ashes.

8 Likes

by far the best idea in here.

because this can work. Trading can continue as it is (with implementing taxes it you cut off all the volume) but with the trading fees already there its possible.

2 Likes

If you are with me, please vote here Terra Station

1 Like

Voted,hope we can get through this together!

2 Likes

As the trading goes, maybe exchanges can charge more fees on LUNA/USD pairs or implementing similar burning mechanism to [Proposal] BURN and REMEDY fee with each LUNA transaction 💊 TEMPORATY V2

Arbitragers and traders now trading LUNA will make a profit while contributing fees and burn LUNA as well. Win-win solution.

Well the measures haven’t been implement on any other pairs before, so if anyone could tag cz on twitter for him to review the idea? They are investors and they said they are willing to help.