Fatman this is an incredible solution and I pray people near the top see it and recognize the value of it. Very clear, concise, data driven argument. You’re a legend!
I agree 100%.
Most are supporting UST payment through BTC reserves. And a minority is wanting the return of LUNA.
People, understand one thing.
UST is the priority and has always been the priority of the network. Anchor was the great propagandist of the TERRA ecosystem. UST was the great marketing, because it was the life saver of thousands of people who had the confidence in it.
UST was an asset to save people’s life savings with anchor proposal, unlikely LUNA. From thousands of people who came to the network, who deposited in anchor just believing in it. In the security and fidelity of the protocol. Where everyone saw this as a 100% safe life savings platform.
Luna is dead. Trust is shaken. Think if you actually create a new Luna or Luna2, what will happen to the coin after an airdrop? There’s going to be another market dump of everyone trying to recover some value from what’s been lost.
People have committed suicide, the panic still exists. The fear is real and it’s still there. People will sell the new Luna2 and there will be a new death spiral happening again. It’s the logic.
The UST was LUNA-backed. What remains now is just that. LUNA is dead. What remains? Honor the UST. Which was backed by LUNA. How? With BTC, which was certainly acquired to honor the value of UST.
TERRA without UST an algorithmic stable coin, has ALMOST no differential against another blockchains. Think deep.
I feel so sorry for those who lost all capital on LUNA.
But the proposal
The motto has always been, UST is safe, it’s backed. Whoever had all their life savings on LUNA knew the risk. Those who had all their life savings in UST few knew about the de-peg (the end user), but they also knew that in a day or 2 we would have the re-peg, which the algorithm would solve. And that didn’t happen.
Whoever had their reservations in UST, didn’t want to risk it. Those who had their reservations on LUNA knew the risks and wanted to take the risk.
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Under this proposal you’d have a whitelisted address (if you held it pre-depegging) but have to repurchase the UST in order to have it for redemption. This is to protect what remains of the TFL/LFG funds from newcomers who bought UST on the way down and knowingly took the risk on a depegged stablecoin. UST users before the depegging had every expectation and promise that the UST peg would be protected, and promises throughout the event as you noted.
I have my life savings here.
Literally.
I need this money, can’t afford to lose it.
25k of UST, spread among Nexo and Binance.
Why would this proposal only consider those in Anchor?
I’m a really small investor. This doesn’t sound fair.
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It would prioritize small Anchor users and UST holders but a lot of how this is implemented depends on how much funds TFL/LFG have remaining. If there is enough to still compensate the majority of the userbase, I’m sure exchanges could work with TFL to facilitate a redemption process for Anchor stakers on CEXes too.
In @FatMan 's proposal, you’d have to buy back from the open market to redeem. In your case, you would buy back $12K worth of UST to redeem it for $12K. Because it is the open market and you buy back at less than what you initially sold for, you’d make some profit. Opposite is true if you buy back at a higher price. You won’t be able to redeem it for more than $14K UST so don’t think about buying $50K and redeeming.
So there is a chance you won’t get back 100% given that you’re buying from the open market but at this point, anything more than what we have now is good.
What about people that have his UST in Nexo platform for example??? Any info about that please.
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Right, that makes sense.
I have my UST in Nexo too…should we wait the possible repeg??? Or what…? Omg
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Forget the repeg.
They would do it as whole. Entire blockchain.
So, surely, they gonna see your balance on nexo.
Don’t worry, they are smart.
Pay attention what the proposal says “Snapshot of Terra Blockchain” not “Anchor Snapshot”.
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I 100% support this proposal.
Is this usually how things like this are solved? Deposit UST from your account into some redemption mechanism account and get the same USD worth of some other token back on some other chain?
Also, I had aUST at the time of the depeg.
I sold at 90% loss (0.1$)
Should I rather just have hold and pray I can redeem my tokens in the future somehow?
And doesnt this idea also just incentivice everyone to buy up UST at .05$ if this would go live, meaning me who already made huge losses, have to buy back UST really quick before price rises again? It would be a race to get back to UST quickest.
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Why would they not include anchor snapshot aswell? Their whole idea of repayment was to incentivice the UST holders, because they are the backbone of UST. Was there every a reason to just hold UST rather than just use aUST? (other than if you didnt trust the anchor protocol?)
Correct. One would need to still be in possession of UST in order to redeem them. It’s not a perfect solution as you say since people who bought/sold during the depegging could either profit or lose out. At present UST seems to be trading around 10 cents but I can’t suggest rebuying it since there’s no guarantee compensation will come. This would help out the people who continued to hold because of Do Kwon’s insistence that a plan to repeg UST or collateralize it was coming.
This would go for aUST as well.
Imho that won’t work because ‘the working man’ might have had their UST on an exchange and then they would fall into the ‘billionaire’ category because the exchange manages billions. It’s something very different to restore trust in a physical bank than into an abstract project that relies on large investors.
Agree 100% man, i put my trust in UST and anchor and as you say, people didnt want to risk that money. i myself put it away to pay for taxes and now i cant pay tax and we are talking about alot of money and i just feel empty. I dont even know how to get hold of the amount i need for paying my tax. Getting money for UST would be life saving.
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Buy it back for how much? I sold it for $1,900. I lost $12k. I don’t have $12k to buy back more. I only have $1,900z
Agree 100%.
I am sorry but we need to admit there is simply no plan could save all!
I have both Luna and UST (25/75) and I would consider Luna as more speculative as price in theory could rise to infinity while for UST, 20%APY is maximum and it’s like the savings in your bank account. The aim of Terra is always to create a decentralized stablecoin and Luna is always acting as peg absorbant and have value created for staking and in case of depeg, help support UST. I am ready to lose all in the moment I invest in Luna (like stock) but never for UST tbh.
In a nutshell, priority is to be given to UST.
For timing, those file a claim need to show how much they lost vs snapshot before depeg, say 10-May, 12:00am. Some may still hold while some may sold already at 0.9 or 0.3 afterwards, we need to ensure only the loss amount would be compensated.
Whilst I lost significant amount, I also agreed we could take a maximum compensation per wallet, say 200K such that more people could be benefit. (Remember only the loss amount is taken into consideration)
If there is reserve left, I would be grateful if could be allocated to Luna holders before depeg as well.
I also hear people saying for those buy Luna/UST after depeg. Honestly no matter what your intention is to defend or speculative or just for fun, you are already entering a highly volatile market and they would be the lowest priority to compensate.
No one wants this but this is reality. I hope we could be more humanity in this event.
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Guys, let’s face it. It’s all about the message that will be sent to the crypto world and beyond. The decision made here is an extremely important message that we’re sending to the rest.
- Both LUNA and UST are dead. I’m a LUNA investor for over a year. I made losses and I have to live with it.
- Although I don’t own any UST I think the UST holders should be compensated more than the LUNA holders like myself because we were not guarantees that we would not lose any money.
- However, the pre-peg LUNA holders/stakers should be compensated as well for their role in the eco-system. Also the ones who bought during the crash should be compensated because they could have stopped the crash. It’s not fair to disregard them because they are the ones who probably lost the most. Let’s not forget that the ones who sold in panic are the ones who caused all this mess.
- I’m not talking about the opportunists that are buying billions of LUNA now for pennies after the crash has happened. I think the proposal by DoKwon to include the LUNA holders up until the crash is overall fair.
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Whatever the market price is, about 12 cents at present. No guarantees this proposal goes through but I’m holding onto mine since I’ve already sustained a 90% loss like yourself.