Summary
The proposal put forth by Do Kwon disadvantages some key members of the community while disproportionally giving an advantage to certain members who are playing games based on the information made public in Do Kwons proposal.
Who does Do Kwons proposal advantage:
- Users who are buying UST with a peg at ~0.1-0.2 cents. Knowing its peg is gone, but trying to buy into the 40% network share for the proposed version put forth by Do Kwon.
- Users who sold LUNA to USDC early in the collapse. These users can now double benefit by both qualifying for the 40% network position through LUNA ownership but also by now converting USDC or USDT back to UST at a discounted rate of ~0.1-0.2. While their decision to sell was their own and valid, they contributed to the bank run and therefore shouldn’t be able to double their benefit in the proposed plan.
- Users who bought LUNA immediately before the network halt at value of pennies, all the while knowing the peg would not be restored.
Who does Do Kwons proposal disadvantage:
- Users who held UST the entirety of the crash.
- Users who burned or swapped UST to LUNA following the de-peg snapshot, especially those who contributed value earlier in the crash when their was still hope of the UST re-gaining its peg.
Motivation
Return ownership proportionally to those who had a stake in the network before the malicious attack. Create a method for redistribution of the network to those who would like to remain in the network, builders and active community members while giving an orderly exit to those who would like to leave the network. I would like to see the future network reward those who were trying to help defend the peg early rather then waiting for the collapse to be final before jumping in
Proposal
Fork the Luna ecosystem to a snapshot pre attack, creating LUNA classic and LUNA. Credit everybody with their previous holdings pre chaos breaking out, including NFTs. This will fairly and evenly distribute ownership of the network to the holders before the attack.
Halt the network, work with VCs and to create a backstop and collateralize UST for added security layer. Get 4-pool operational as intended. Add circuit breakers in the cases of future attacks or depeg events to slow and allow the mechanism to work. Timed withdrawl of UST from ANCHOR (4 hours, 12 hours whatever it is).
Create a distribution schedule for all pre-attack holders where they get say 5% of their previous holdings unlocked each month for 20 months. This will allow people who want out to exit their share of the previous network slowly over time, while allowing builders and believers to slowly absorb the exit of those who want out. Reward those who brought new capital into LUNA on the drop from the TFL LUNA holdings, based on the dollar value of what was purchased (edited)