This is a duplicate post because Agora has suspended my previous account because it is posting “destructive comments”. Anyways, I am reposting the initial idea.
NO FORK - There are a lot of great proposals to save the community and the users’ investments and savings (specially holders), however Terra decided to proceed with and promote for their destructive solution.
If you hold LUNA or UST and have lost a lot of money, then please read the below carefully and make sure to write a comment on this post to enhance its reachability as I believe this proposal is a win-win situation.
Validators are the ones responsible of saving the community and the stakers who trusted them. If validators approve this proposal and vote “No” to TFL’s Terra Builders Alliance: Rebirth Terra Network, this will give us a chance to rebuild the trust in the network and reduces the losses as much as possible.
I am confident that if validators burn all the excess UST and LUNA and mint xLUNA instead is the best way forward. In return, they, the new owners of xLUNA, will be the new owners of the Terra project as Do showed that he is an incompetent arrogant and only cared about his cut and his whale friends.
Both LUNA’s and UST’s market caps at the moment is around 1$ B USD each, can’t the validators and new VCs just buy and burn the excess by swapping to xLUNA and continue with the existing blockchain and everyone will be happy
- xLUNA will be the new governance coin i.e. used to vote, propose, stake, validators etc. Holders will be to some extent the “Board of Directors” of the Terra Project.
- xLUNA will absorb the excess pools of both LUNA and UST.
- Profits should be distributed amongst the shareholders yearly/quarterly or whenever.
- After regaining the community’s trust, the new TFL management to make sure this situation doesn’t reoccur. This is out of this proposal’s scope.
- Implement and Vote Yes to BURN and REMEDY fee with each LUNA transaction
How the new Terra network should work:
LUNA - Rewards for UST on-chain/off-chain swapping to retain the peg
UST - the Stable coin
xLUNA - the Governance coin
UST, and other denominations, will be swapped with LUNA to retain the UST’s peg. Also, arbitrageurs can make money and continue to support the ecosystem.
xLUNA will be swapped by either UST or LUNA by validators as part of the governance process.
The amount of UST and LUNA coins each validator burns (minted xLUNA) determines their share (%) in the new Terra project,
After the crash, we saw that Terra Governance was spammed by the low prices of LUNA. Hence, this new governance token is a must.
No more Do Kwon and his gang.
Variables and Notes:
- LUNA(p) = LUNA price before the UST de-peg
- LUNA(d) = LUNA price after UST being de-peg
- UST(p) = UST value before it the de-peg (1 USD)
- UST(d) = UST value after being de-pegged.
The below pegged and de-pegged values are just explanatory examples. The actual/best values should be thoroughly discussed within the community.
1 LUNA(p) = $120
1 LUNA(d) = $0.00000013 - ATL
1 LUNA(p) = LUNA(p)/LUNA(d) = (120/0.0000013) = 92.307 million LUNA(d)
1 UST(p) = $1
*1 UST(d) = $0.05
1 UST(p) = UST(p)/UST(d) = 1/0.05 = 20 UST(d)
1 xLUNA can be minted by either:
Burning 93 Million LUNA(d)
Burning 20 UST(d)
Bottom line: By burning the LUNA and UST coins, and minting xLUNA instead, UST and LUNA supply should dramatically decrease and their values increase. Hence, UST will be pegged again
- In regards to the proposed hard- fork solution, I don’t think this will work! Once airdropped, people, I am confident the “ex-believers” who will get the majority of the new coins, will sell their LUNA and UST immediately and crash the system, again!!!
- In this case xLUNA goes for the community members who really wants to save the project, specially TFL. In return they will be the new owners.
This proposal can be considered as a draft for a better same-concept proposal.