This is probably the simplest way to deflate coin supply!
Tag every wallet as “inflated wallet”
Wallet owners must transact their coins from the “inflated wallet” to a smart contract “Oven” which deflates the wallet to bring it back to the original supply.
Wallets that fail to get deflated stay tagged and are useless until they pass the Oven.
If its technical possible, coins automatically pass the “oven” as soon as they get transacted the first time. Exchanges only need to halt trading, transact to oven and back and trading can continue as the exchange wallet(includes all user wallets) is deflated. Same thing happens when wallet owners send from their wallet to an exchange as their wallet gets automatically deflated.
Wallets of mega whales holding huge amounts like 0,1%+ could/should be punished as there is a good chance that these are the ones accumlated a lot of coins very cheap, sold before the crash, bought or black swan actors. I think that would be fair and would promote a more healthy coin distribution.
Lets me explain why this is fair for everybody. This measure would immediately create a huge demand as everbody has the chance to still accumulate cheap Lunas for a low price at the moment. People who averaged down, will have the chance to get most of their wealth back. No complicated things like taxes etc need to be implemented. It’s a one time thing only and things can go back to normal in a relatively short time!
What do you think guys? Feel free to tweak this idea of course. Its just my idea and input that could eventual help bringing Luna back on track in a very uncomplicated way!
What you’re proposing is a variation of ‘burn the supply of everyone’s wallets’.
However… I’m not an expert in economics but the problem with these proposals is that, economically, I think the value will only go up as much is ‘burned’ so ultimately it won’t be a gain for anybody. Not too sure about your point of huge demand, though, you could elaborate a bit more on that.
The other problem I think is that crypto wallets are supposed to be ‘sacrosanct’. No government, entity, whatever can compromise it. You’re saying that we MUST put it into the oven or… what? We lost it? Few crypto people will appreciate the idea, I think.
If the supply could be brought back to the original amount, theoretically a big part of the value could be restored. Nobody knows, the market will decide on a fair price.
Whats the point of a tax which is in fact the same, just that an oven is a much more elegant solution as its more or less instant, it will burn this mega supply instantly and it won’t mess with the market participants that would get punished by the tax, just sending a transaction or trade. (not good as this solution forces traders have to do the dirty job and carry the costs of deflation, whereas others can just comfortably hold their stash until supply is decreased by literally doing nothing!)
if somehow, technical possible, a transaction automatically passes the oven and deflates the inflated wallet! If you don’t move your coins, the wallet stays inflated until the first transaction is performed.
Additionally, I think super whales should be punished as they are the ones who have probably something to do with this mess, so they also should held responsible, as we can see with these crazy proposals.
This would bring down the supply even more and they would be forced to give some value back and this would lead to a much better coin distribution where manipulation moves from large whales in the future are less likely!
As a further step, a very small transaction tax could be implemented which must be used for burning more Luna from the market on a daily basis, supporting Luna on his way to become deflationary.
For UST there are already good proposals, so that a situation like this cannot happen again!