Oh, but terraswap is working, does that not suggest that the market module is not disabled?
The market module is built into the blockchain (available only at station.terra.money), Terraswap and Astroport are external services.
@gasgallo Interesting, thanks for shedding some light on this. I have been looking for some clarification on this for days.
So, what happens to proposal Terra Station - will that be implemented in 23hrs? And if the market module is enabled after implementation shouldnât that help the whole situation a bit. As per TFLâs tweet, both these proposals were supposed to help with the repegging together.
âwere supposed to helpâ but they didnât and now itâs too late.
If the other proposal will pass, then it should get executed as well.
1 Like
Yup, shocking that their governance didnât have any way for emergency implementations. Might have worked if they were implemented on time
This proposal wouldâve just accelerated Lunaâs crash to 0, but that wouldnât have solved anything.
Minting/selling Luna merely utilizes Luna buyersâ money to defend the peg, but Luna buyers have a finite amount of cash in their pockets. If you mint faster, you just exhaust their pockets faster, while extracting roughly the same amount of cash.
USTâs failure was inevitable due to the simple fact that it was printed without adequate backing. As a result, the Luna/Terra ecosystem didnât have enough money to pay even a third of UST holders if they ever decided to cash out.
Itâs just math. Before the collapse, there were about 18 billion UST tokens while the total money that could be extracted from the ecosystem (by minting/selling Luna and selling LFG reserves) to pay them was only about 3-5 billion $.
If people ever try to cash out more than that, which they tried now, the reserves dry up and both Luna and UST automatically crash to near zero, because there are still 10+ billion UST holders, but the money to pay them just doesnât exist.
Itâs like owning coupons for a bankrupt, empty store - those coupons are pretty much worthless.
Implemented?
This is a really good point. Itâs so easy to get carried away with emotions running high, but actually we could easily make things worse if we act rashly. Thanks for the wise words, it was a good sense check for me
1 Like
Why if this was voted is not implemented?
I guess yes. you can see UST total supply now change to 0
Where does it show its 0?
Why is this proposal not respected?
If the current stabilization algorithm doesnât work, they must implement another one, whatever it is, they canât leave UST like this.
What happens now? Changes automatically implemented? If so, can someone explain how?
Minting is disabled, so no, this proposal wonât do anything.
But it wouldnât have helped anyway, because minting Luna faster doesnât magically increase the money you get from buyers, it just exhausts the buyersâ pockets quicker.
And speed isnât the problem here. The problem is that there simply isnât enough money in the Luna/Terra ecosystem to pay out all the UST holders.
I see, but if minting is allowed? Will the changes be impemented automatically? This is why they filled the changes section? If yes, can you briefly explain to me how can this be acheived, reference any books if you know?
It doesnât look like minting will ever be enabled again, because thereâs no point. At 6 trillion Lunas minted, itâs safe to say they already squeezed almost every penny out of Luna buyers. If they restart the mint, nobody will be dumb enough to buy more Luna with an infinitely increasing supply that goes up by trillions every day.
If they do enable minting again, this change seems like it will be automatically implemented, since itâs already applied on https://lcd.terra.dev/market/parameters . But as I said, itâd be pointless. It would only increase the number of zeros in front of the Luna price without doing anything to restore the peg, because nobody would buy more Lunas at that point. Exchanges would likely get rid of Luna completely if that happened.
Can someone share the calculations that shows how the proposed changes:
- Increase BasePool from 50M to 100M SDR
- Decrease PoolRecoveryBlock from 36 to 18 Blocks
will increase minting capacity from $293M to ~$1200M?
I donât think anyone cares how accurate those numbers are any more.
So did this proposal get implemented in some emergency way before the vote was finished?
All the analysts seem to think that the growth in supply of Luna accelerated mid-crash. Or is that just based on Do Kwonâs twitter thread endorsing it but they donât understand how the governance model works?
1 Like