Do Kwon wrote in his own thread “The Terra community must reconstitute the chain to preserve the community and the developer ecosystem.” does he mean they want to try to restart the chain at the time of the depeg, and distribute funds accordingly to his plan?
Yes it sounds like his main plan is to try to restart/revive the project?
If thats the case, then there is only a competition to get cheap UST right now. But why would anyone want to buy into UST now? Especially me who are at huge losses already…
What about multiple snapshots during the events, for a more fair distribution. Less for the ones who luckily got out early?
And are you sure this would include aUST? I had everything in aUST at the time of the depeg, so of course I hope this would be included. Even though I have sold everything at huge losses already.
Yeah, my simple brain don’t understand everything around this.
Totally agree! I made a comment about just paying back exactly what was lost vs buying back UST to exchange in which case you could either profit or still lose depending on the price you sold at and the price you buy back at. Making the community whole who doesn’t mean some folks still profit and some folks still lose.
And as I said again that is not right. It doesn’t matter if it’s more complex. If some people have to wait, then everyone can. Your proposal opens the door for people to be compensated more than others not just based off the amount they hold, but where they parked the money - hence, the contradiction of “prioritizing small caps”, and it allows for fleers to be fully compensated, and for peg defenders to be completely wiped out.
At the very least, all small-cap users should be compensated across all networks and exchanges equally at a snapshot once burning was halted.
right now $1 UST is ˜$0.10, so you’ll need $1200 to get 12K worth. If you don’t have that, then you can buy back whatever you can. It is better than nothing. But don’t go buying it now because this proposal hasn’t been approved.
If you bought it at 99 cents you lose everything. If you sold it for 99 cents, you can literally get it all back plus another dollar. It’s absolute absurdity so that a niche group can take everything and leave everyone else completely burned.
In normal bankruptcy, there’s a recovery waterfall. For simplicity, all recovery goes to debt holders before equity holders. As mentioned in earlier chats, for banks that defaulted, depositors who hold small amounts get paid in full - this avoids social chaos and the number of suicides that’s we now see.
Lengthy post but I want to touch on the process for claims in traditional finance/legal process.
all debt holders put in their claims, which has to be verified by liquidator. - this is to calculate total debt. This is to be done when liquidator is appointed.
the debt holders are free to sell their debt to anyone else after that.
recovery proceeds are paid to the final debt holders.
I held ust/aust before depegging and never sold it… believing in the mechanism/promises.
I even foolishly bought ust at 0.992, .0995 etc.
While I like this plan, this will benefit those that got out at high levels, even if they buy back ust. People who bought at “dip” at 90ct, 80ct suffers.
My suggestion,
-announce a future snapshot date, people get their ust in different protocols within terra or other blockchains, liquidity pools, cex etc and put in anchor.
Tier Recovery goes to anchor depositors based on tiered waterfall. Calculate the recovery for each tier based on available funds.
Each wallet gets an assigned recovery % based on their funds.
Post snapshot, depositors can withdraw their funds, but cannot deposit any more till distribution date.
Example, depositor A has 10,000 at snapshot. He gets allocated 100% recovery. But he needs $ urgently and decide to withdraw 4,000. His recovery proceeds now drops to 6,000.
The excess $4k allocated to him initially goes into a “cex recovery fund”
This cex recovery fund will go to cex to distribute to ust holders on pro rata.
Great proposal!
From what I understand my UST on Nexo ($1300) is included, which I still all hold (awaiting the recovery plan Kwon was talking about earlier this week saying to hold on…).
Yes, I also posted the same comment in Do’s thread and honestly I am not an IT guy so not quite understand how it works. I am just speaking from a traditional finance liquidation perspective.
Thoughts on the fact that he suggested it is up to the community? If they won’t do it by quorum on terra station, I wonder what will determine what “the community wants”.
Yes, it would make most sense and this would be the case in the traditional finance world. Can you link or let me know where to find Do’s thread? Thanks!
Hi I am a specialist in bank risks . I understand this is a stable coin.
You don´t have to keep assymetric “benefits”. make it equal. So the best option is to burn, reverse splt.
it was supposed to be a convertible EXCHANGE coin. So you must respect equal rights to everybody.
Otherwise , next crash they will create rules for “special holders”:
the whole function of a stable coin is that EXCHANGE any time.
Don´t hold the people here. Allow everybody GO if they want . Let them burn and convert if they want.
If they do that, HONESty reputation will come and the NETWORK may SURIVVE respecting the words.
Of crouse the whales will love to get paid only holders “before the crash”. that will kill the netWORK.
just my 2 cents. Respect everyone right to leave and pay equally . and at least you leave this problem with less reputational risk
Do you mean that the top 1000 addresses will only get 5% of their balance?
I am a “Whale” that lost everything, just like everyone else.
I had 1.5M locked in Anchor so I am probably among those 1000 addresses.
I started with 50K 2 years ago, and did great with some crypto projects I’ve invested in (and I don’t feel I need to apologize for this, we’re all here to also to make money).
I then moved my profits to Anchor (and stupidly enough, all of them) so I can live from the interest.
I agree that bigger wallets should wait longer, and I will agree to any offer that can get my money back, even if it means waiting, but the question is if this offer also guarantees a full return of our losses for the “whales” among us, that might be “new whales” and still lost everything…
Here’s the thing though, a “stable coin” with no actual collateral giving 20% apy is just as risky. I’m not on either side but you can’t cherry pick bits of half reasoned analysis to suit a point. The stablecoin technically had little if any value to begin with and anyone that actually did DD knew that. Everyone should be compensated a portion of what they lost imo.