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

We really need to keep the pressure on, both CZ and Vitalik support ideas similar to this proposal. I really think only outside pressure can get Kwon to pay up

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It can’t be part of this proposal, this is just the first step, in which we try to refund most people by priority and as explained UST ‘is’ a stablecoin, while LUNA a token which can go up and down, so you need some more patience from the others proposals, but we aren’t against it

Please read my previous posts on the legal distinctions/obligations between UST and LUNA. Aside from that, we know how much compensation should be awarded for UST because it’s a dollar stablecoin. It would be very messy for LUNA because it’s a volatile cryptocurrency. Besides, its explicit purpose was always to support UST as outlined in the whitepaper. If UST holders are compensated (there isn’t enough money to compensate everyone unfortunately) a LUNA v2 could be issued to LUNA holders which would actually be worth something.

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UST and LUNA are totally different assets… They have no responsibilities about the price of LUNA unfortunately. You invested in a startup which failed. If this company still has some money they have to pay back the debt (UST) first. That’s how it works…

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don’t forget you have ust on exchanges please

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What do you think about this idea?

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Let me ask a question. UST was a stable coin and Luna is for ust peg. But what if nobody buys luna? Then ust is nothing. If UST is a stablecoin, luna is stable coin’s guarantor. So, people who buy LUNA was helping UST to peg… Both sides must be rescued without prioritizing.

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When terrastation voting?

why hasn’t @dokwon acknowledged this proposal yet?

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I support this idea. Please remind me if and when this goes to a vote.

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That’s not how it works though. People who bought LUNA at whatever price knew the risks of it going up or down depending on demand for UST, and some rode it from under $1 to $120. People in UST were promised a stablecoin and are debt holders who must be compensated by LFG. UST’s peg was also considered to be backed by the LFG BTC reserves. Those reserves should go towards this purpose.

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Voting here or using the on-chain governance mechanism is irrelevant to this proposal.

A proposal like this can only be enacted by TFL unilaterally because it concerns their funds. And they will only enact it if they:

1. See it, first of all!
2A. Understand and agree with the reasoning behind it voluntarily, or
2B. Are pressured by enough people or by law enforcement.

Continue getting the word out. We already have support from @cz_binance, @VitalikButerin, and @Maxwell_Maher. Voting here or in Terra Station is irrelevant to this. We have to make TFL acknowledge us and acknowledge their responsibility.

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I’d like to add that users holding UST in short farm contracts on Mirror should be included in the repayment scheme, and not be overlooked. They hold collateral debt positions and sold short mAssets for UST in order to maintain peg close to oracle price. Shortly before the depeg, TFL developers passed an immediate update incentivizing short farming on Mirror via governance poll 273.

However, this contract migration instead drained the contract of UST and led to the freezing of capital of Mirror users and those of Aperture Finance whose contracts operate a delta-neutral strategy on top of Mirror.

The lock contract for short farming, (terra169urmlm8wcltyjsrn7gedheh7dker69ujmerv2) that is meant to hold the user’s UST for 2 weeks time before release, or allow users to unlock their UST if they close the collateral debt positions they used to sell short, is now empty.

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This could be a second step

CZ:

"Personal opinion. NFA.

This won’t work.

  • forking does not give the new fork any value. That’s wishful thinking.
  • one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).

Where is all the BTC that was supposed to be used as reserves?"

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Agreed.

I think all action and platform related with UST should be sum under the same address and relief.

If UST is stable on Anchor, it should be stable on Mirror, Spectrum, Aperture as well.
Every UST holder should be treat equally, at least for protocol under the Terra blockchain.

I agree with this proposal . People who owned UST are basically treating it as a savings account because they know it is not going to 2x or 5x, it basically should have been pegged to 1USD. But rather, people who invested on LUNA is just an other crypto or equity where it can 5x or -5x, which is expected just like any other stock or even SPY. So UST are termed savings but LUNA is investment. Both are two different things.

If tomorrow Apple crashes to 0USD no one can ask the company to return their money because that is an possibility.

So I would say UST holders should be returned whole citing they did not expected any profits on it, they just parked their savings here just like any other bank’s savings account. Anchor was said to be one of the blue chip savings protocols and there are companies like Stablegains leveraging it to park their customers savings as UST which are at stack today.

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I really think this is the only solution to contain the damage that has been caused to thousands of families. I hope this proposal is getting visibility (I think Do Kwon shared it on Twitter, but I am not sure). Anyway, I’m not sure if there is a chance to go to a vote unless TFL allows it first.

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I fully support this. I just want my initial capital back and I will never toss a dime on crypto again!!!

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