Summary
We have to create a hard fork of LUNA and distribute it among current LUNA and UST holders. The new LUNA should be used in governance and dApps etc. while the old LUNA is still going to be correlated to UST.
Motivation
Pegging UST to $1 without destroying the LUNA ecosystem is impossible. It is a Catch 22. More supply LUNA has, more LUNA should be minted to cover $1.
Proposal
A hard fork called gLUNA (governance LUNA) will be created. This fork will have a limited supply and will be deflationary. gLUNA will replace old LUNA’s functions except for keeping TerraUSD pegged. Every current staker and holder will get their shares later to be determined by the community.
I don’t think that there is a way of reaching equilibrium while constantly minting LUNA, decreasing its value and then minting even more to make it match $1 per each burnt UST
Anyone who tried to keep the Terra ecosystem functional (including long term holders of all kinds) should be favored. Of course, the distribution percentage of gLUNA will be different depending on which group the investor identified with (i.e. if the investor is a staker, they should have a higher distribution rate compared to a holder in a centralized exchange)
I don’t agree, it’s a tough time. And tough times require quick solutions. Dividing the community is not a good idea. Giving everyone a share would be more inclusive, and quicker to solve the problem. CEX investors gave up on their voting right but we shouldn’t blame them. They still should be able to get a smaller percentage of gLUNA
LUNA is supposed to be the volatile asset that secures the UST peg. When UST comes in, luna goes up. When UST comes out, LUNA goes down.
I got into UST because these were the rules. I knew that LUNA supply would go to 100 trillion before allowing sustained (months of) depeg.
As LUNA goes to 0.001 (or less), retail will buy and the repeg will be restored (once all UST is burned). Or maybe it won’t, we don’t know. We do not know because we can’t know how much money retail will put in at lower luna prices
This proposal would change the playing field rules mid way. It is unfair for UST holders as they are supposed to be the most protected class under current rules.
These type of rule-changing stunts is what authoritarian governments do. We can do better. Let the market decide.
Euh dude, really no. It doesn’t matter if you are a staker, the pope or a small investor on an exchange. Luna is not an NFT. Every Luna is worth the same irrespective of who holds it. So every Luna should be treated the exact same way.
Currently, no one is protected. Market is being manipulated and LUNA algorithm isn’t responding well. It’s okay (and a virtuous thing to do so) to accept mistakes and change opinions/methods to prevent further damage.
This is not accepting mistskes, this is giving luna money that it doesn’t deserve.
If there is depeg luna goes down, that’s the rule of luna. Any money left should go to UST, which is what the algorithm will do if you don’t touch it.
You only want to touch the algorithm to shift the money that is going to UST back to Luna because you have Luna.
Again, this is what a dictatorship would do. We must be better than that.
Truly accepting the mistake would mean luna going to 0 and all remaining money going to UST, which is what the algorithm will do if you don’t touch it.
Giving money to Luna is refusing to accept the mistake.
LUNA is the backbone of the whole ecosystem. I have equal amounts of UST and LUNA, it’s a shame that you would accuse me of self-centered thinking. We are all here to make our best to find a solution. You must be better than that.
You do not know if UST will go to zero. You can not know this because you don’t know how much money retail will put in at lower luna prices, which can restablish the peg
