[Proposal] Tiered repayment: 1:1 USDC refund to all UST holders up to a certain cap per-wallet using LFG funds, favouring small wallets

Where do you see the vote?

We haven’t defined this yet, after a vote, or after that Do accepts our proposal, which seems most people do, we will write details well. I don’t think it’s important, you could keep staking meanwhile

Did anyone from the luna foundation ended up contacting you? I’m no legal expert but if there are any funds left, LFG will probably have a legally binding obligation to return it to the VCs that provided it, no?

go to goverance in terra station

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This is not one person = one vote.
This 1$ = one vote, so retail can´t win.

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This post is from @mlawyer

Hello @dokwon

I am a FinTech Lawyer working with US DOJ. Following is my understanding of law with regards to current situation. I am sure, you have the best lawyers of the industry by your side. Feel free to discuss my understanding with them.

You led TFL that issued UST, an IOU with USD price guarantee, on Terra Blockchain. It was generated by burning LUNA on Terra Blockchain and was burnt to issue LUNA on Terra Blockchain. This is how USD peg, that was guaranteed by TFL, was maintained. LUNA price was never your responsibility.

Now, you have dissolved TFL, that issued UST, and proposing UST holders to be compensated with LUNA, something for which you have no price liability. This is gross illegal. Let me explain below.

First of all, let me tell you, for which you have no responsibilities about.

1. LUNA on Terra and its IOUs on any other chain and exchanges. Vitalik Buterin or Charlie Lee are not responsible for the crash of ETH or LTC either.
2. ANC, other stablecoins, stocks and any other token issued on Terra Blockchain.
3. aUST. It is Anchor’s responsibility.
4. UST IOUs on other chains and exchanges. It is responsibility of the issuer to be solvent by holding equivalent UST on Terra Blockchain.

Your sole responsibility is giving USD peg to UST holders on Terra Blockchain. Just like Circle is responsible for USDC and Gemini is responsible for GUSD.

Now, let’s say, you deny your responsibility and say community will decide how UST holders on Terra Blockchain will be compensated. You will have to face a class action lawsuit for that. Many institutions hold UST on Terra Blockchain. They pulled out of Anchor on time, but could not get peg. So they are stuck with their client’s money. There are also people who loaned money from Banks and put up on Anchor. Similar situation for them as well. If they declare bankrupt, banks will move to court against you to recover their depositor’s money. As per the information I have, all these people are teaming up. So, please be careful, if you plan to abandon UST peg.

Now, if you want to meet your legal liabilities, here is a roadmap…

1. Find the total amount of liability due to UST on Terra Blockchain.
2. Find total asset held by you through TFL and liquidate.
3. Launch a collateralized SableCoin or buy an existing one, e.g. USDC or GUSD.
4. Allow users to swap out of their UST holding on Terra Blockchain.

I personally believe, if you wait for some time more and buy UST at current price, you may save a lot of cost. Don’t be illusioned if any lawyer suggests you to get rid of UST liabilities. From Mark Karpeles to Alexander Vinnik, none could finally dodge the long hand of law. It is good for a law firm to entangle a Billion Dollar client in legal soup. But, I believe, you are intelligent enough to understand the gravity of the situation on your own.

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Lol what ? I know you are agree, but why would reply to my text and say that lol, I asked a genuine question

@FatMan The problem here is you refer to billionaires, but I had my life savings invested in ust and it was roughly 380k. So how is that fair to cap it at 250k wallets? I am not a billionaire and my life depends on this money which I deposited in a stable coin ‘safe’ savings account and not in a volatile asset e.g. Luna.

How do you decide where and who to exclude? As people with 300 or 400k is nowhere close to being a billionaire who can just write off the money we had in ust.

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It’s not clear yet who decides for funds, whales don’t have a better choice, this is the only proposal which gives them something now and which allow to give them their funds back in form of token or something later with another proposal

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This is probably the only proposal that could revive the Luna ecosystem.

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30% of capital (from 250 to 500k)

This is just what we can give to everybody now, then you can get back others in other form, such as token, fees or whatever. Here we are just talking about giving back to most people their money, not that you don’t deserve the difference back.

@FatMan I was staking ust on Binance. I could not withdraw them until May 11. Your offer does not apply to me? i lost 5000$ and still have UST in my wallet.

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How about the case when I deposit UST from address A to Anchor, gain yields for some time, then withdraw and transfer all UST to address B, then deposit UST to Anchor again from address B.

At the time of the snapshot yours funds were only on one address, this is the elected one.

The cap will depend on the exact economics once an accounting of TFL’s assets is complete. So far we have just been using an example cap.

I hold almost 263,000 UST so I agree, I don’t want to be excluded either. Depending on what is possible with TFL’s funds, I think payouts should be in tranches or tiers. For example, everything beyond the first 250,000 per wallet could be paid in tiers over different stretches of time. Or in varying gradations of reimbursement, IOUs, and new tokens. Just spitballing here.

As Vitalik has just said on his Twitter, it’s OK to accept imperfections for now that can be figured out later. Important to do the maximum amount of good quickly.

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Best proposal. Imo best usage of LFG funds, let’s make this one happen.

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So nice that you agree too, after having this accepted we can evaluate the best proposal in many other forms for the difference you still miss.

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Also, if you are interested please follow @FatManTerra on twitter so we can keep ln touch easily.

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Yes