[Proposal] Deprecate Seigniorage Reward Policy and Increase Gas Fees by 5x

The fees are calculated using the following formula:
fees = gas_limit * gas_price + min( moved_amount * tax_rate , tax_cap )
, where that “gas_price” in the formula is defined here and it’s what this proposal aims to increase x5
Now since the “gas_price” will increase x5, the “fees” collected will increase.

The collected fees are then distributed based on the ratio defined in https://lcd.terra.dev/distribution/parameters. As it stands that is:

  • 15% to validators/proposers of the block
  • 35% to the existing delegators
  • 50% to the community pool

Therefore: Bigger fees = more allocation to the three groups mentioned above

I hope this helps.


Stealers here hope binance stop burn system, not have builders

And binance tax maybe fund for old ust repeg binance user

Could you please try to parse your sentence through a different translator than the one you have used? Unfortunately, it doesn’t make sense and can be taken the wrong way.



Update: The data discrepancy in StakeBin data is due to the fact that StakeBin has considered some failed transactions in their calculations. StakeBin has been notified about the issue.

A more accurate analysis with LUNC Penguins data has been performed as below:


What is this ‘burn’ , ‘community pool’ , ‘tax’ learn the exact meaning

Second Clarify or implement goals in the project you want to do.

Publish transparently whether there are transactions outside the specified

What are the methods used when the end goal is achieved?and then what are the new goals

++personal opinion: binance stops burning and if total supply equals circulation supply lunc starts burning again…with burn-only, no re-mint, no community pool-mint
Lunc accumulates the tax until the total supply equalizes and returns it to the pre-accident binance member top owners. If he wants, he will burn the ustc he has obtained.

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All the answers to your questions are covered in the proposal outline at the top with additional details in follow-up comments. Please read again the proposal and the comments.

Binance did not stop burning. They burned only half of their fees this time around because they didn’t like (rightfully) that silly Seigniorage Reward Policy which causes the re-mint of burned tokens in the CP. This proposal (as the title says) aims to stop that along with any redirection of on-chain tax proceeds to the CP. So everything that is sent to BURN will 100% BURN…


No this scam for me with binance

Strong words but you’re not wrong! That is what this proposal will stop…
It is unfair to Binance and all those other individuals’ contributing to the BURN cause.

Well it was before editing lol.

Ed was on an AMA with you? Which is the AMA being talked about here?

thanks for tracking that down… I think the only multipliers need to be changed on uluna and uusd in this list, https://fcd.terra.dev/v1/txs/gas_prices

I think the other stables are still in line with the old gas prices since they didn’t death spiral, i.e. 170 krw is about $0.13 USD, 0.125 eur is also about $0.13 USD… right now the uluna is 5.665, and to be in-line with the other stables, it would be around 838 uluna… If you just 5x it, it would 28.325uluna… and the uusd would be 0.75uusd.

I’m scratching my head a little with the gases, because through chain analysis, the amount going to the community pool doesn’t seem to add up (there is more going in then expected). Anyway, would be worth while to do a post analysis if the gas prices are increased to see what actually happens.


Interesting, nice find…

Damn you, you’ll make me start scraping the chain :slight_smile:

where are you getting these rates from? Currently the only market I see for ukrw (KRCTC) is the in-built market module (which is switched off).

  • Currently, the oracle exchange rate is 1 USTC = 1,273 KRTC
  • This would make 1 KRTC = 0.00078555 USTC = $0.00001616
  • Currently, 1 KRW = $0.00079

This indicates that all stables have death spiraled, and we should 5x all denoms as per my initial suggestion.

Happy to hear your thoughts on this.

@dfunk, @ek826

Am confused.

I get the following oracle exchange rate for ukrw: https://fcd.terra.dev/oracle/denoms/exchange_rates

“denom”: “ukrw”,
“amount”: “0.201604280539720206”

, and the market swap rate for ukrw according to https://fcd.terra.dev/v1/market/swaprate/ukrw is

“denom”: “uusd”,
“swaprate”: “0.00078578048923593813”,
“oneDayVariation”: “0.00000416695896836594”,
“oneDayVariationRate”: “0.0053312267597766021”

yup, this is what I have shared as well:

I read it differently, and please (@dfunk, @ek826 ) correct me if I’m wrong.

Since the denom is UUSD in the market module for ukrw:
1 KRTC = 0.00078578048923593813 UUSD = $0.00078578048923593813

If I switch the market module to give me the swap rate of UUSD (https://fcd.terra.dev/v1/market/swaprate/uusd) we get that 1 UUSD is:

“denom”: “ukrw”,
“swaprate”: “1270.84051854119717117371”,
“oneDayVariation”: “-8.56415048707168600726”,
“oneDayVariationRate”: “-0.00669385589594284836”

So 170.0 ukrw (as per gas_fees) is:
170.0 / 1270.84 = 0.1337 UUSD = $0.1337 [which aligns with Ed’s numbers]

this is incorrect - 1 ukrw = 0.00078578048923593813 uusd (https://fcd.terra.dev/v1/market/swaprate/ukrw)

which means 1 KRTC = 0.00078555 USTC = $0.00001616 (which aligns with my numbers)

The mistake you are making @godoal is doing conversion between KRTC and uusd - you need to convert ukrw to uusd

This is correct - all TERRA STABLES are depegged.

I have not followed the discussion, but did see this part about the KRW valuation (and whether it is depegged or not). I had the pleasure of working with @johny (Faffy) (who did quite extensive research) in looking deeper into the Market module and how the system values LUNA v1 vs. the TERRA STABLES (in research)(see research at the bottom - links).

The oracle pricing for stables are derived from their real world fiat values (and based in the replenish pool side for the TERRA pool [as opposed to the LUNA v1 pool]). That means the system sees all the stables at their real world prices. The oracle for LUNA v1 comes from central exchange pricing.

SDR (actually usdr - micro SDR) is the price stability between the two pools.

The link @godoal mentioned return back how many of the Stable Denomination that 1 LUNA v1 would purchase:

So, on a market swap since 1 LUNA v1 = 0.000157 USD (since the system takes UST as USD at $1), and 1 LUNA v1 = 0.20027 KRW (since the system takes KRT as KRW at 1KRW [or $0.00079 USD currently]).

However, since 1 UST (128.87 LUNA v1 or $0.02048) does not equal 1 USD (6,369 LUNA v1 [1 / 0.000157] or $1), then 1 KRT (0.09482 LUNA v1 or $0.0000149) does not equal 1 KRW (4.99991 LUNA v1 [1 / 0.20027] or $0.00079)

So, in other words since all the stables are from the same side of the replenish pool, and the system values them on their real world values, the swaps between them will be equivalent to their real world exchange rates in terms of percentages (they would exchange with each other value wise - ie. they are each the same percentage wise devalued). But, if you turned on the swap for LUNA <> TERRA STABLES, it would see each of the stables at the same price as their real world fiat values (rather than what UST is exchanging for on central exchanges, or the other stables are exchanging for between LUNA <> TERRA STABLES on other DEX’s based on their actual traded values).

So, yes, all the stables are depegged.

I hope that helps a little bit.


thanks @aeuser999 - this is actually quite helpful!

In fact, this has given me another idea - rather than trying to re-peg USTC which needs to absorb $9.8B of liquidity, we can look at trying to re-peg some of the other stables. For ex: supply of EUTC is only 53,784 - this would need only $57k to absorb and re-peg. Similarly GBTC would need about $24k to re-peg.

This, however, is a separate topic of discussion and I won’t delve further into it on this thread. But I’m happy to discuss this on another thread. :slight_smile:


Good idea but as you said, please discuss it in a separate topic. For now the focus should be abolishing the stupid idea of reminting and find alternatives for dev pool :slight_smile:

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