I believe most large exchanges would support this process. It would be very bad publicity for them to refuse to assist/provide data on the compensation already received by those who sold their UST. I also don’t think it would need to be overly complex. For example, if someone was buying/selling their UST multiple times, we’d consider the price of the coins as they were initially sold. Any coins not sold/remaining would still be eligible for compensation. I think this would be a relatively simple automated task, provided by reputable exchanges which are trustworthy. A couple audits for less reputable exchanges may be in order, but I don’t think any of them would risk their business for the relatively small compensation fund.
Yeah, I’d love an answer to that one… Did not sell any in the end because of hope to repeg as advertised. Sum remains the exact same.
hmm… i agree with slowing down in general. WHAT IF we get a whitelist from predepeg snapshot - is there a way to figure out how much of the current UST in circulation belong to these addresses? just wondering if that amount would be more manageable - with existing plus hopefully future funds.
Posted some thoughts about TFL/culpability here
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I’m not saying they wouldn’t necessary be included. For example, if someone panic sold the absolute bottom of $0.05, they may be entitled to restitution funds significantly higher and would benefit from the refund, receiving the difference. Something like @b3p0’s marginal approach could be used to decide what refund each person would be entitled to. For those who were able to sell for more than they were entitled to, they’d get to keep the excess, but they wouldn’t be rewarded twice. I’m not for punishing those who held their UST on a CEX or sold below what they’d be eligible for via restitution, just for cutting out the inefficiency of double repayment. I think most would agree, as this could make a big impact on the size of the refunds of those most affected. A 50% increase perhaps.
I put some thoughts on mechanics here, given there isn’t $1.0B - $1.5B available. Would be curious on your thoughts.
I did not understand.
I had ust 15,000, all my savings and 293 moons
When I saw that the price went down I read some news, I was scared and I sold everything at 0.35, while for the moon I could not sell because NEXO was blocked:
Will I be compensated or not? Even if I had the funds on NEXO? I really hope so because I haven’t slept for many days … and I eat little.
Thanks.
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Well, we are many that have moved from Anchor to CEX, and ended never selling 1 ust… It was only natural and the logical thing to do as we were expecting (as advertised by LFG) that ust would recover its peg, so we could take a well deserved breather until things got sorted out. My ust holdings hasn’t change from the 12th when I moved them out… Sitting on Binance now. Should we transfer back to Terra wallet, what’s your opinion?
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Really love to hear from someone like @FatMan Or @Oak. I believe it’s not difficult to trace that the transactions of UST from terra to cex were sold or not. But I have transferred back to terra wallet.
Those who had bluna at anchor and those whose money was liquidated due to the crash should also be rewarded and not just those who had UST. All my money was in anchor and I couldn’t send the money from Binance to avoid liquidation even if it was to no avail.
Absurd messages are read on Twitter that those who had Luna should not be compensated because they can afford the losses. -_- 4 thousand dollars in Luna from my monthly salary from an honest job
great sum up
I agree with you. Please see my latest reply to @FatMan above explaining my thoughts on how we should make better use of the reserve. Those who transferred to a CEX and didn’t sell would still be eligible for a refund, and those who sold below what they’re entitled to receive compensation for would receive the difference.
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I believe now is the time to call upon all those Crypto giants like Buterin, Hoskinson, Friedman, Cz, Wood etc… to chip in like Justin Sun seems ready to do. The funds could then quite easily exceed 1bn without really hurting them. It would show that crypto relies upon solidarity values, and prevent many of us from huge distress or worse… Would show what class can do.
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I am disappointed by the fund dislcosed by LFG. It is too few to help most of the victims. Given that the fund is very limited, double compensation must be avoided as every penny “earned” by someone is another penny lost by someone else. I am thinking maybe we can use the date that the UST left the Terra Chain to build a compensation hierarchy.
As the market price of UST trading on exchange is known for each datem, we can determine how much to compensate the victims based on the maxmium price of UST on that date. For example:
9 May: Highest price is 1, so people who withdrew the fund on this day could sell their UST at $1, therefore no compensation will be given, otherwise double compensation may occur.
10 May: Highest price is $0.95, so people withdrawn the fund on this day could sell their UST at $0.95, therefore a compensation of $0.05 for each UST will be given to avoid double compensation
11 May: Highest price is $0.85, so people withdrawn the fund on this day could sell their UST at $0.85, therefore a compensation of $0.15 for each UST will be given to avoid double compensation
And then so on until the date that the UST has dropped to nearly no value.
Of course, under this approach, people will never receive whole but double compensation will surely be avoided, so spare fund can be used to save more people. Frankly speaking, there are too many possible scenarios and we can never come up with a one-size-fit-all solution. Please enlighten us if there are better methods to avoid double compensation or promote the effective use of the fund.
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what about those who initially bought & staked ust on cex before the crash
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Valid point…
We agree that double compensation must absolutely be avoided. However, I think using the date of the withdrawal to decide what each person would get makes too many assumptions. Many people withdrew from the exchange and never sold, or sold at a much later date at rock bottom capitulation prices. It would add some complexity and require a level of trust, but I think we need to work with exchanges to determine exactly what each person sold their UST for (or if they didn’t). I don’t see large/reputable exchanges posing a significant risk of fraud, though some additional verification/auditing of lesser known exchanges may be needed.
They should be refunded, just like the others. Perhaps just a bit later…
Guys, while I appreciate everyone still having a lot of thoughts on the proposal at this moment, lets remind ourselves that LFG has already stated that they are considering various approaches to restitution. This thread was likely an important element in pushing for the current status of them considering restitution. Having said that, I think the mechanics of the restitution will be based on advice they obtain from liquidation and restructuring experts as well as their legal team. They will most likely design the mechanics based on the discussions they are having now behind closed doors. Nothing can be done by anyone in this thread in regards to that at this moment so best thing to do is wait for their announcement of how they will do it. Hopefully it benefits the very most people as possible.
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All that was needed is no associated futures contract which allows for gaming the system and manipulation like was done.