[Proposal] Luna Hardfork

Summary
The decreasing price of LUNA can lead for even more problems than the depeg of UST… VALIDATORS can stop supporting the network because of huge loses!!! It will eventually ruin everything.

Motivation
1196 text proposal
PLEASE SUPPORT this proposal, cause that’s the only way to recover from situation… LUNA still has a great fast, decentralised blockchain with proof of stake that is needed. People won’t buy UST again because of depeg… Coordinating strengths on UST and dumping LUNA is just a waste of time and money!

Proposal
The only thing that in my opinion will save the situation is proposing a hardfork that will change all USTs to LUNA-s on all wallets and make a reverse split for all LUNA-s… UST will became LUNA, supply of LUNA will decrease by reverse split and eventually both LUNA and UST holders will get back their money. We need to accept that situation was a “Death Spiral” and UST was a mistake… If the community will continue to mint new LUNA and Burn UST the project will die!

10 Likes

At this point, I guess the choices are limited.
Stop the printing machine is the priority, really… is the Erdogan economics.

2 Likes

It’s dead jim. LUNA is gone. They didn’t stop the minting. We need to refocus on creating incentives to burn USTs and LUNAs. Only when incentives from burning is available then we can solve this problem. The traditional reverse stock split is not acceptable. We need to make the community want to burn, and burn fast.

The tokenomics of LUNA is boiled down to this:
The side that has the most money gets their value taken in order to reduce it.

The moment the UST isn’t pegged you don’t want to sustain this. UST holders are incentivized to burn LUNA and dump them on the open market for USD very quickly.

We thought about an insurance fund mechanism paid by an insurance tax on all transactions that make money to absorb shocks below peg. When you have a George Soros level of attack made worse by abusing the trust model on price oracles, you could again find yourself completely using up all of the insurance fund.

Before we get ahead of ourselves, the part that is hard to fix is getting out of the curve.fi trap. We can have price oracles that use VWAP across central exchanges as to avoid being abused by instantaneous prices and excess deviations. You still need AMM bots working on CEX to take command of the trades to defend it.

Have pointed out 2 issues we need to address. Need to burn excesses. Need to control the actual price rather than trust price oracles.

2 Likes

I think that burning won’t work, cause we’ll need to burn a lot, u can’t achieve that, cause now no one wants to use terra’s blockchain because of all that shit)) We can just transform all remaining UST to LUNA and try to pump LUNA with community funds…Reverse split can be an option cause it can immediately reduce the supply… I don’t know if it’s a great idea but i can remember good examples of reverse splits that made the price go up) For example ERLOND did the same thing and its value increased…

4 Likes

Great idea ! The team should action soon.

This is very bad for anyone that deposited into Terra’s network after the snapshot if they simply lose the assets they deposited…
Also as said above by others, it doesn’t fix the liquidity problem outside of Terra.

1 Like

I would propose we do a one-off debt restructuring where UST holders control 95% of the new Luna and Luna holders the remaining 5%. In future, we should write the restructuring event in the code. I made a concrte proposal which is now under review.

this proposal is very good since you no longer have any use for it, they are only using trades to win and leave the project in the short term, hopefully they will take the best proposal since I have lost more than 300 thousand dollars with the moon at this moment I am in a bank broken

1 Like

You said in the other thread you bought [email protected] which would be $35m, not 350k?

Huge numbers either way and I feel for you but I was just being curious/nosey.