Shall we set up a pre-depeg small UST holder protection committee led by Fatman and try to contact TFL/LFG? And anyone with lawyer and liquidator background from the community shall be welcomed to join the committee. Let’s gather as many victims as possible from different channels (shameful that terra and anchor discords have suspended), and reach a consensus on 1) the min threshold for refund, $50k, $100k, or $200k etc. 2) only cover the actual loss of principal, no need to cover return of 20% yield from anchor. maybe create a channel in TG or discord?
As for @dokwon @dokwon.terra’s proposal (if they chose to proceed), I think whale UST holders could join the debt-equity swap plan, as they are mostly VCs and terra backers, and maybe more willing to support ecosystem building. While there is no point for small UST holders to get a new speculative token, what they want is stable conservative investment, even if they get the new tokens, they will probably dump in the market, as the trust on terra will be gone, not good for the ecosystem.
Disclaimer: I hold Luna pre and post depeg, which I always view it is a speculative bet, while my UST is life saving for the rainy days, as it is deemed to be pegged to $1. That’s why I support @FatMan proposal and think UST holders esp small holders who have lost their life savings should have higher priority to get refund.
By the way, now Luna market cap is gradually catching up with that of UST. If the team /VCs keep buying up Luna and burn more, maybe there is still chance to get UST back to repeg? Afterall restoring repeg is the most important for restoring the confidence in whole terra ecosystem.
If it is not feasible, maybe the best is to get UST collateralized, cut the link with Luna to stop inflating Luna supply, then Luna will be emerged as L1 token, and UST re-emerges as a collateralized stablecoin. I think TFL will need to work with outside parties for new funds (heard many Korean corporates are in the same boat, hopefully they could take additional steps to restore the confidence), and it is also time for Dokwon to show his commitment and put in part of his wealth to rebuild the system.