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

Sorry could you go into a bit more detail on that? What/who would they be giving money back to? If they were somehow depositing that amount directly into the distrubution fund I could understand, but selling directly back into UST seems wasteful, wouldn’t it just be diluted? What would be the point?

People’s lives have been ruined. Basing a proposal to restore billions of dollars of peoples savings on “I suspect” isn’t good enough. So unless you have a crystal ball with 100% accuracy another direction needs to be found.

Please correct me if i am wrong, UST is relying on LUNA stay pegged. By restoring of snapshot from pre depeg for UST and not LUNA, How the UST will sustain the peg with the current price of LUNA. So what will UST be like after the repayment is complete? Do you think thise who got compensated will still put the money back again to UST or UST will just be a bygone after UST holder benefited from the repayment.

thanks…i cant live anymore…they should do human thing…i have nothing to lose @dokwon they should act like bankruptcy and pay their dept…i buy stable UST i thought this coin has stable price forever! what a stupid person i am…

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Yes, sure.

People who want a 1:1 refund will have to return an equivalent amount of UST to the refund wizard. People who panic sold will have to buy UST on the open market which causes them to give back some or all of the money they made on the trade, and in return they get a 100% USDC refund on their initial UST purchase on-chain.

Now, once this UST is given back to the refund wizard, it basically belongs to the distribution pool. It would be in TFL’s hands now, and they could choose to either burn it to reduce overall debt overhang, or they could simply dump the UST they get in order to acquire more USDC for the refund pool while also making UST more affordable for people who have to buy it back.

UST will likely never sustain a $1 peg again. It will require over 10b in inflows. That money doesn’t exist. This is a restitution plan for the leftover money in an attempt to leverage maximum societal good from the little we have left.

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This proposal won’t work. Paying investors won’t recover the ecosystem’s value. Maybe when you get your UST and you wan’t to sell to recover your money, you won’t be able to do so because everyone will be selling and the price will rapidly get down to 0$. It will be “first come, first rescued” and “last come, he still gets wrecked”.

This proposal won’t work, check out the one from @Nikola-HydraChain 8 Steps to Save Luna now - Economic Refactoring Proposal from industry professionals.

It’s the only proposal that can save the ecosystem and every investor.

The important thing is we stay united on the basic principles of the proposal and not get too bogged down into disagreements over the exact implementation. We should focus our efforts on promoting @FatMan’s proposal and putting pressure on @dokwon and TFL to respond. Once they agree to honor the community’s wishes, then we can get into discussing the specifics, but it’s important that we present a united front and remain engaged. We can do this together! :slight_smile:

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Respectfully - could you please read the proposal before commenting?

This proposal is not giving UST to anyone. It doesn’t involve people selling UST to get their money back. It involves people returning UST to a TFL refund wizard and getting a 1:1 USDC refund. The entire process is off-market so slippage would not be a factor whatsoever.

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Ahhh this is the piece of the puzzle I was missing. My apologies, and thank you for clarifying.

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My UST at the moment of the crash was staked in Binance so i believe that they wasn’t in terra blockchain rether in BSC. Am I wrong?

Simon Chadwick (@simonch00) who had lots of LUNA and lost millions, support our proposal. Guys let’s keep sharing this thread everywhere and make it happen for real! We are getting there.

When we held Luna, we were willing to accept its upside volatility, and within reason the downside too.

It was unfathomable what happened, but even if this had not happened there was always the possibility of UST contraction and Luna dropping in value.

With UST this was different, it was advertised as a safe haven, with anchor protocol.

being a savings protocol meant to replace your bank. There were risks to mainstream, but not discussed enough (myself included) Many normie lost a lot believing safety

Smart Luna holders know this is the only way for Terra to recover from here.

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So am i right to say that there will be no more UST and LUNA as per say? With the 1.5billion worth of BTC compensated to only UST holders. There will not be any money left to rebuild LUNA and there will not be a LUNA v2 or UST v2 right? So this proposal is just to kill off this project rather than saving the project, correct me if i am wrong.

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funny idea but not work.

u just thinking how your money back.

not really thinking how terra move forward.

the reality is, if terra system gone, all gone.

if terra system recover, u get your money back.

I agree

How about those million of users who stake their $UST coins in centralized exchange like Binance, Bybit, Huobi etc, shouldn’t they be compensated too with this proposal?

I agree. While I believe there needs to be a more just approach to those that sold we can iron that out after we get TFL, DK etc to acknowledge the proposal and open a dialogue with the community.

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There’s something that strikes me as a potential add on to your proposal that might make it easier for LFG to approve. Since 82% of UST was in the hands of whales and the “poorest :rofl:” wallet held 955k. Why not calculate the amount of UST gained from those wallets during their staking period on Anchor till depeg and allocate it to the fund for making whole the smaller wallets?
This would mean that top wallets might recuperate their initial investment but without the added yield which is obviously enormous after months of staking. For example, with a low average of 19.30% a 3M ust wallet was generating : 48250 and that of course was exponential, obviously there were even larger ones really siphoning the reserves at the highest rate, btw (but this is another matter…) So my point is (and it doesn’t seem impossible to do but I could be wrong…), if it was decided that above a certain amount staked, yields should not be repaid it would make it much easier to first make whole the smaller wallets and reduce the amount of funds needed to fully or partially refund wales wallets? Just an idea on top of yours… Your proposal should get adopted considering it’s the only to stop this nightmare for small holders and restore some faith in Terra/Luna.

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Yes, this proposal is about restitution and not rebuilding. To be honest though, I think it’s the best chance at rebuilding as well, because if we make most people whole, there will be pretty strong community morale which can be leveraged into a new chain/fork. Making a new chain with no users, no money, and no reputation sounds like a recipe for disaster.

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A LUNA v2 could certainly move forward after the restitution to UST holders with greater support and a salvaged reputation. TFL may even be able to raise capital for it. Honoring their debts to savers is a necessary part of restoring trust/confidence in anything they wish to do though.

Agreed.