How can we get this proposal to be seen and accepted? What can I do to make this proposal to gain traction?
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Current Max is 6.9 T but current Circulation is 6.5 T. Is there a possibility to burn the tokens not in Circulation? I do not know how this works but I am guessing the excess is with the LFG organization.
Thoughts? That would at least give some start to this Burn process. Advertize it as well that will gain traction and start improving UST and LUNA prices.
The problem is that the network is centralised in the hands of validators and TFL right now because staking is disabled. So we can’t proceed without their blessing, and if they and the VC backers who own most of the $LUNA want a fork, they will get one.
So we need to engage leaders in the community (devs, validators, TFL, LFG). Make them read this and we have to hope they see how grave an error they’re making by running away from the 11B $UST bankruptcy. If they saw it for what it is, they would change their direction.
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These figures will be most up to date https://dashboard.lfg.org/ so they only hold 828.90M UST on the balance now, those numbers have been dwindling recently. But it’s still enough to burn millions of UST per day and start the process off. If people saw TFL treating this SERIOUSLY as a bankruptcy it would completely flip the optics of this situation for Terra. That’s why they should be opportunistic and do whatever is possible to buy back as much $UST as they can at these levels.
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I think this is one of the best proposals put forth so far. While there are nuaces to be hammered out during refinement and final draft of the proposal, it shows a clear path toward solvency and recovery, which is clearly needed desperately at this time. I am 100% against a hard fork and we need to focus on saving Luna and UST and one of the best communities in Crypto / DeFi.
NO FORK!
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Unfortunately most fresh luna were in the hands of like up to 100 private addresses. They swapped ust for them then sold them on the market.
I think it should be possible to freeze the exchange addresses of those who transferred those trillions.
The money were suck from luna and ust by those who minted those trillions
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That’s also my understanding yes. Freezing exchange balances might help but could cause more drama than it’s worth (look up the $JUNO whale saga).
The beauty of treating the excess $UST as debt to buyback is how it incentivises attackers who still hold many $LUNA to sell it off during the debt repayment phase. Only people who believe the debt repayments would work & believe in the ecosystem’s recovery would want to hold $LUNA if we are burning tons of cash and insolvent ($LUNA should trade sideways/down in a range during this period).
My proposal was devised to try and align all stakeholders toward recovery & solvency for Terra, while shaking out as many bad actors as we can along the way & decentralizing the stake (which is absolutely necessary).
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Problem is the attackers long sold on market. At least 4 trillion are on exchange wallets and 1 trln in eth Bridge
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Do we have any idea who owns these $LUNA?
like you say “would need to play it smart to acquire the $UST back at a fair discount”
at the point the plane start nobody will sell their coins and wait for the price rise because its from public knowlage the plane and the necessity is in our side. if the buyer need to be smart also the seller. this plane will not work.
But if no one sells, price goes up and then ust holders can exit at a reduced loss
I am also in favor of opening ust based bonds to reduce liquid circulation
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What would be the reasoning for bad actors to own a majority of luna if it is to completely destroy it’s value ?
I could understand an hostile takeover to kick out TFL and VC, but why crashing the ecosystem afterwards ?
The only thing would be if it cost less to acquire lunas to grab the community pool and deplete it, but I don’t think that’s the case ?
Most of the 70 wallets that got together 4.5 trillions luna were all new made around 11th May.
They all deposited on exchanges immediately after swap and probably sold at bottom. Who has them now only exchanges know.
From what @venusrose is saying, it’s possible and even likely that attackers already exited their $LUNA positions. The reason in my OP I suggest we try not to rush the process is like @lastinthebus says:
This is true for $UST, people would be incentivised to buy discounted $UST and hold it during debt repayments. But $LUNA will have little value until we can re-enable staking, which can only happen after solvency is regained, so I think most bad actors would not buy or hold $LUNA during the debt repayments.
It’s important that we incentivise bad actors to sell their remaining $LUNA and not encourage speculation on it again for some time, this way the $LUNA is liquid enough for TFL + Community to buy back the controlling stake during/after debt repayments.
@Paul_Leprecheur is right that raising the price of $UST is good, it gives people an exit; but if we are too aggressive (e.g. if we burned all of LFG’s $UST holdings at once) the price of the remaining debt might go up too fast. That’s why I proposed slow $UST burning phase, in which it will take some months at least to clear the debt.
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Lunav2 removes UST. How is going against the ethos beneficial?
here is an example of an adress involved in the attack
https://finder.terra.money/mainnet/address/terra1wl5pwfj6zuqra2rhjs9eyufke3a0fjdckafxfu
activity on the adress starts on 11th may.
- ust is sent to it from exchange
- ust is then swap for luna
(first swap was 100000 ust for 9131 luna around 10$ for 1 luna rate) - they kept doing it every minute till network was halted.
- this address alone burnt around 160 million UST in the swaps for luna.
- during the last hour when the death spiral unleashed this address swapped
2 milion UST for 56 BILLION LUNA - those 56 billion were sent instanly to binance (and dumped on the market most probably)
from my findings 70 adresses swapped together almost 5 trillions luna from which 4 trillions were sent to exchanges, 1 trillion to the eth bridge
the death spiral lasted for around 1 hour in which 90% of the current supply was created.
this correlates with the huge volumes appearing on exchanges at the time. For example first 2 hours after the surge in supply had a volume of 3 trillion luna on binance alone.
so all these trillions hit exchanges asap, also they were deposited on exchanges just from under 100 wallets in huge batches.
another interesting example is this address which is by far the largest swapper at the end of the death spiral
https://finder.terra.money/mainnet/address/terra1pm5t8er7k5paj9kca5n0d0ysz2nyjdp9u805pf
it swapped 1.2 million ust for 720 billion luna which were sent to the eth bridge, which today holds almost 1 trillion luna, of which 70% came from one adress alone.
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also researching on the terra finder how those swaps happened it becomes obvious that the attempted solution of rescuing by selling btc and buying UST with it was useless.
the core issue was fresh luna being minted continously and sold straight to exchange.
buying ust didn’t stop the attackers from minting new luna and sell them on exchange. if the algo had be stopped on 11th may before this huge luna inflation happened, there would’ve been no loophole to exploit and no unlimited luna supply to sell on market destroying the value of the ecosystem
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also those 80k btc they had in reserve worth 2.4 bln$ at current price of btc.
at current price of ust of 0.1$ they could ve bought 24 billion ust lol more than twice the existing supply.
so only using a fraction of their reserve they could’ve bought all excess cheap UST outthere, reducing the supply significanly and re-pegging it.
instead they claim they bought ust at 1$ ??!!
this makes no sense whatsoever from someone trying to save the project.
if someone is attacking your asset and you have reserves like that did the only logical move is to let the asset temporarily crash while you keep buying it at the bottom.
instead they claim they bought UST at their max price of 1$. really? 
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seems like LFG is moving UST from exchanges to their address.
they have 1.8 bln UST right now there
3 examples of withdrawls from binance to LFG wallet 50 mln ust each