Idea is to fix the LUNC distribution simply by burning making a call to a contract and burning LUNC as the gas needed to make a contract call.
Once the user makes the call to a contract, they will obtain a controlled amount of new coins. The calls could be made in a loop by adjusting the Terra Station so that users can mine this new coin by burning gas. The supply is controlled, and after each call, we would mint fewer coins per call. The coin can also be pegged to USTC (explained below) and staked for rewards (in LUNC and USTC).
As the result, we would have reduced LUNC by gas burning, also, we would have a healthier distribution. We do not need to ask exchanges to list it since we already have a swap mechanism.
Motivation is plain and simple. Burn LUNC, provide a utility for LUNC, and encourage people to move LUNC off the exchanges.
As proof of concept, this token is already coded on Ethereum, and you can see how well the distribution system worked. You can also see the source code. The reason why I gave up on this token is that the Binance chain messed up registration and somehow registered another project on Ethereum rather than the Binance smart chain (meaning, their IDs were not randomly generated). They never fixed the error after months of complaining, and I ended up losing money… so I gave up.
Here is the token with code and distribution (and how it worked)
A document I wrote a long time ago…
- Make a currency that has a similar function as discussed under Motivation.
- Instead of using the halving period, smooth out the curve so people do not have to wait for a new halving period. Each call reduces a small amount of a coin that is minted on the next call.
- As each call mints new coins, we also mint or burn reserve coins. All of this is to be done incrementally, rather than doing it all at once, while LUNC can fix the gap to maintain the stability of USTC. This is how this coin is pegged to USTC
- The coin can be staked with validators, while the rewards are in LUNC and USTC only
- The coin is not to be listed on exchanges that do not implement the off-chain burn until the situation with LUNC is fixed.
- We can always find out the swap price of the coin by calculating how much was minted, much LUNC was burned, and using the current amount of minted coins per call.
- The burning mechanism is to be implemented into Terra Station, which would loop the calls to a contract, and act as a miner.