It doesn’t look like we will get any concensus. In that case, we should just restore what was promised to UST holders at the very beginning, i.e. they should be able to convert 1 UST into 1 USD worth of Luna. To avoid death spiral, I propose putting a cap on how many Luna can be mined with 1 UST. Say, 1 UST can mine 10000 Luna max. For people not halpy about this proposal, we can fork another chain, but that would require a lot of time and discussions.
All proposals are not getting votes at the moment and it is unlikely we will get to a consensus any time soon. So, we should just let the system run how it is supposed to. We can always hard fork another chain for people not happy with this solution at a later date.
Restart UST/Luna burn/mint mechanism.
Add a hard bound on the UST/Luna ratio, I propose 10000 Luna per UST max to avoid death spiral.
The key is to get trust from potential new investors, A lot proposals are about compensating the old investors rather than attract new ones. New investors will not get in if they think they will be ignored and a new chain is forked, they will not get in if they don’t know how much they will be diluted by UST in future. Setting a cap on the UST/Luna partially solves that issue and when the amount of UST outstanding becomes more manageable, they will have more confidence buying Luna.
I don’t think it would help the situation to dilute Luna further. I think they are working on remodeling the tokenomics to make the situation better long term. Hopefully more safe, if the rumors are correct, it could just be exploited again.
The UST/Luna mechanism is designed to dilute Luna to pay the UST. The problem with a hard mint stoppage would cause people to dump UST run and dump before the limit is hit. There is nothing wrong with diluting Luna for UST holders, the problem is infinite dilusion. Adding a cap on the Luna/UST ratio will prevent future death spiral.
Nothing wrong to dilute Luna for UST holders? If one day 1 US dollar worth lesser than 1 Japanese Yen, do you still want to hold US dollar and stay in United Status? I bet you will move to Europe and live with Euro
Please sign up for Economic 101 before you give any suggestion here
There are many ways of paying back, issue a currency with your name on it and printing your own currency continuously will let everyone run away from you, your debt will remain and no one will accept your toilet paper currency
Wake up, pack your bag and go to college study economic 101
Look, if you understand economics, you should know that debt holders have priority in claim vs equity holders during a default event. And I said we should cap the ratio between UST/Luna mining, to say 10000, so there won’t be unlimited Luna. After all UST gets swapped into Luna, there will be a finite amount Luna, and no debt. The value of Luna will not be exactly 0, because I believe in Terra network.
There is a difference between sovereign bond and cooperate bond. When cooperate bond defaults, what happens is usually there is a debt-restructuring, where the bond holders will get a very large share of the equity. The company will still have value and continue operating because there is no debt anymore. The same thing could happen to Luna, after all UST gets converted to Luna, the terra network can still be used, it can still generate transaction fees. I believe there will still be value in the network.
When you get a margin loan, and the underlying asset losses value, you get liquidated. You can’t say, “wait, I can’t pay you whole anyway, let’s wait the asset to go back in value then I will pay you.” After all UST gets converted into Luna (at a capped rate), there will be a finite number of Luna, and a non-zero market cap and no more dilusion. The ecosystem can continue operate.
I am pretty sure I have better education than you. The way you talk by insulting make me think about your education level being very low.
A new terms can only work if debtors accept it and I don’t think debtors will accept your terms. You can try get a margin loan from Binance and go default and see whether you get liquidated or they let you hodl until the it goes back in value.