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

I am Chinese, our country is ruled by a dictator, our people are losing everything, a lot of people are unemployed, including me. Now I have lost all my savings again, I hope TERRA can do something right now and give the money to the victim

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Luna has intrinsic value? You mean to help keep UST on peg?

The Terra ecosystem needs both UST and Luna. Saving junk UST to keep Luna makes absolutely no sense. I’m saying that as someone who had over 100k$ worth of Luna 2 weeks ago.

Like many people have mentioned, we can accept a loss in Luna since that was a speculative investment. UST was not supposed to go down 90%. And that loss is unacceptable.

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no that is not how it would work. What would happen is that if this proposal were to pass you would need to buy back the UST that is required to redeem for USDC.

So lets say for example you had $50K UST that you sold for $0.1 so you got back $5K. Lets say the proposal gives you $50K USDC back. You would need to repurchase $50K UST at the current market price to send to your Terra station wallet and use the redemption tool to redeem $50K UST in order to get $50K USDC back. So the gamble is that if UST current market price is at $0.15 you would end up suffering a 5% loss since you had to rebuy UST at higher price but obviously much better than a 90% loss.

However we don’t know what the hypothetical redemption cap could be. It could be $40K or it could be $100K or more. At this point since you don’t have any UST it is best to wait to see if this proposal passes and what the redemption cap could be so you know exactly how much UST you would need to repurchase to redeem. Buying back UST without even knowing if this proposal will be accepted will most likely exacerbate the problem and cause further losses if you buy UST at a high price. This is going to take time to implement. I hope this makes sense.

The way things are shaping up, I assume this will be settled in a court of law. So don’t expect any money for the next couple of years.

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I am with Fatman

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the best idea at this moment

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With police reports lodged everywhere around the world I assume, this will 100% end up in the courts UNLESS they can find a way to make UST holders whole before the court process is initiated because it would mean that there is no loss to litigate.

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Thats what happens when you invest. Could have gone down 1 million percent or gone up 1 million percent.

not sure anyone ever ‘invested’ in a stable coin thinking it can even go up 1 million percent. Generally thinking it could go up or down 1%

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If you only bought UST and didn’t have UST staked in Anchor, I doubt this proposal will apply to you. That is the argument that some people are making about including UST on exchanges and its impossible to satisfy everyone. However most of the UST was bought for the sole purpose of staking it on Anchor or using it within the Terra blockchain ecosystem. If you never had your UST on a Terra Station wallet, I can’t see how you would be included since a snapshot only includes assets that touched the blockchain. Buying UST off an exchange does not include the blockchain.

The interest was meant to bring in users to the network. Does not matter what they offered. They could have offered 10 Elephants. The fact is UST was a stablecoin and advertised as such while LUNA was a risk. Thus, this is an amazing proposal.

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My UST was in the Terra Station Wallet on Terra! I just didn’t have it staked on Anchor! It was just in the wallet. Does the snapshot apply to me then?

yea, ofcourse.

Did you reply to my question above? Or to someone else?

Also, what is the theoretical blocknumber that would be taken for the snapshot?

This is a solution, but there is a risk that if the proposal was passed while I was sleeping, allowing UST to be sent to TERRA for USDC, it would cause UST to skyrocket without knowing it.
Suppose I originally sold UST for $0.10, sold 50,000 of them, and received $5,000. But after this proposal was passed, BINANCE’s UST/BUSD price rose to $0.5, and at this time I had to buy 50,000 USTs at $0.5, which cost $25,000.
What if I don’t have the $25,000? I’ll end up with the $5,000 I had before. I don’t know if I didn’t understand it (I’m not good at English) or this is obviously unreasonable

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that yes was for your question.

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I also support this proposal. you have to think about the people who lost money on ust. ust should be equal to 1$. but it fell. make a compensation to the people who held the ust before the start of the unpeg

It could cause a temporary price surge but if only people who held UST prior to the de-peg can claim this refund, non-UST holders have no reason to buy UST. If you wait long enough, you should be able to purchase UST again at a reasonable price.

if they dont solve the issue via burning luna for sure… I bought after they stopped minting… that was the signal to enter…
the suggestion to go back in time via snapshot and pretend nothing happened is nothing more than wishful thinking…
Luna holders are happy to be in for the gains when luna did 100x but don’t want to take the responsibility for the downside… People have warned about this scenario that played out with UST for months and months on youtube and twitter and your beloved founder has made fun of them and even offended them…
and for the people saying “i lost 400k, lets go back in time” → your 3-4k luna investment turned into 400k… you just never realised the gains" and thats ok… you have been greedy, its human nature… i lost 6figures in the bull market of 2017, because “hey i just gonna take my investment out once i hit 7figures” greed… Learned from it… and made it this bull run…
Only thing that should be fixed and compensated is UST holders who didnt sell, because if everybody did what they did, this whole thing would have never happened in the first place…

I know nobody wants to hear it, and if I was in Terra holders shoes I wouldn’t want to hear it as well, but what you guys are trying to do is cherry picking… risk was pubblic information on youtube and many different channels…