It’s been a tumultuous week and like many of you I am at this point flabbergasted by the buffonary of Kwon Do et all. However I don’t think either LUNA or UST necessarily need to die for the other to succeed. My proposal is;
Suspended UST indefinitely until appropriate funds have been acquired. This would mean no more arbitration, speculation on a stable coin, etc. This does not mean UST will not return; however it needs to be pegged by more than LUNA and ‘BTC’. Building up pool reserves with actual fiat, other cryptos (BTC and ETH) that can inflate and peg UST at a dollar in the case of when Luna takes a massive nose dive as it did the past week. Building this up will take time (months, maybe years) however with the certainity that people can get their ‘investment’ back (a stable coin shouldn’t be an investment but I digress); this is where LUNA will come into play.
As of May 13th, 4:55 EST Luna has actually 100x in 12 to 24 hours. What does this mean? Perhaps people still have a looming interest in LUNA as a whole (aside from degenerate swing trades). Building upon this, LFG and Terra should road map that potentially once a month they will do a buyback (essentially halvening for lack of a better word), taking it off the market, and burning it forever. Luna in its current form will not be minted. Knowing this, speculation and interest will drive up the price - as there would be a certatiny that the supply will lower and the price will go up. Current bag holders of LUNA can stake their current coins, hodl, or swing trade (which would burn luna as well by doing so.
Eventually, if the community decides to and the interest is there, LUNA can be pegged back to the UST when there are enough avenues/collateral that can actually support it.
This could take a long, long time (or not) however if there is a tangible road map and no uncertainty of the fate of these coins I do think it will generate interest again…
Or I’m an idiot talking out of his ass