Thanks for getting into it. I missed the part of users having to buy back UST. I mean we need to realize that some users in this scenario would profit and some lose, so not everyone would really be whole, right?
The guy who sold at $0,22 and now rebought at $0,7 is still out 50%. And vice versa if someone sold at $0.8 and just to gamble on it re purchased at $0.3 would be making a 50% profit.
I’m not here to say what’s right and what is wrong, just to hear opinions if this would deliver the desired results of making people whole and them being satisfied with this.
So is the plant to give big investors tokens, and to repay the small investors who repurchase the UST to their wallet balance on the snapshot date? Or just the second part without tokens?
I would like to ask one.
If, like me, I’m using UST with a lending protocol and I’m forced to clear for $ 0.2 and lose UST itself, will I be eligible?
It was a SOL chain.
This is the best and most ethical solution. People who had faith in TFL and Do Kwon and didn’t panic sell their UST should be protected. Save the majority of Anchor users and spare the most suffering!
Please, please reimburse UST holders. I couldn’t even move my UST from Terra Station to any exchange to sell. And now I and many others have lost everything on a coin that was supposed to be stable.
Yeah, people gambling on the market would get commensurate returns. With this proposal, if you had UST during the depeg, you will be entitled to give back that much UST and get USDC 1:1. It doesn’t matter if you panic sold or panic bought on the market. That’s your prerogative, your profit, and there’s nothing we can do to control it. If you sold low you will have to pay the price and rebuy UST because it’s not fair for people to get double-rewarded with both a UST refund and the amount they sold on the open market.
Anyway, it looks like what I said came true - TFL ignored this entirely and UST has gone into a death spiral. They really should execute this plan with the little remaining balance they have to save a little bit of face with the community, and can move forward with a fresh forked blockchain. Good luck Do Kwon. You will forever be looking over your shoulder. It’s not a good spot to be in.
This is very thoughtful proposal that would help with a lot of pain being felt by the ‘small’ players. Let’s make them whole.
Forget about the UST peg and UST/LUNA relationship. It is over.
Forget about the current LUNA. It is over. We need a new LUNA - some kind of hard fork. We need this new LUNA so that the ecosystem can continue to grow. So many teams and efforts were destroyed and we should keep that talent building. The new LUNA will be worth simply whatever people think it is worth (no tie to any stablecoin).
Plans for a new Terra stablecoin can be done separately from 1-3
love this! LUNAtics are essentially the seed investors for version 2.0. I’m fine with some lockups with reasonable assurances, assuming interest is paid (maybe a more sustainable APR!) Thanks for getting this ball rolling @FatMan
My opinion
This Event affected are on-chain , cross-chain , and on the exchange I try to separate the two cases.
Troubleshooting for UST
$UST in the short term, turn it into asset-backed Depending on the available funds, the UST supply is at 10B UST.
Troubleshooting for Luna
$LUNA In the short term, when $UST is not burned, the Luna Mint is reduced and grants special privileges. For those who hold Luna by giving a special reward from Stake by specifying the Stake exposure period in special cases and the lock duration according to the number of Luna Supply.
After this, use the Burn mechanism. Luna’s Tx Fee, the amount of Luna will decrease with the number of users on the chain.
Agreed. The old coins are dead. There are no substantial changes we’ve even been notified of that would prevent any of this happening again. Dialing up a couple gears on the minting mechanism is like performing a nose job on a corpse.
TFL/LFG/Do Kwon need to reimburse UST holders, plain and simple. My $260,000 is now worth $26,000. And I wasn’t able to even sell. Network wasn’t even working to enable a move to an exchange. Beyond outrageous and handled pretty much the wrong way by the Terra team at every turn.
Words can’t capture my anxiety over how this will affect my life and my life plans. I’ve been throwing up for days. Completely powerless to do anything but watch as years’ worth of hard work cratered to 9 cents on the dollar. And I can’t even redeem for that 91% loss because the network is closed!
If they want to be taken seriously, they NEED to make us smaller players whole.
Even if he does get the funds it’s over the death spin is at full speed. These numbers are a bit off but the most we can do as people who lost is not suck new investors into this mess
UST has a circulating supply of 12.12B
It has a market cap of $7.4B
To restore peg 12.12B - 7.4B = 4.72B of UST needs to be burned
Terra validators have overwhelmingly agreed that this is what must be done, UST must be burned and peg must be restored
To burn UST (and restore peg), you need to mint new LUNA
To burn 1 UST you need to mint $1.00 worth of LUNA
Let’s do some simple math
Say we can burn all the excess UST all at once right now, and restore peg
To burn this 4.7B of UST we would need to mint $4.7B worth of LUNA
At the current price of LUNA ($0.03), this means we would have to mint ~156B LUNA
In this scenario, the circulating supply of LUNA would increase from 3.5B to ~160B (increase 45x)
The price of LUNA will decrease to ~$0.0006
Now you could in theory begin to slowly burn down that 160B circulating supply of LUNA (does this sound impossible and like a terrible investment? IT SHOULD SOUND IMPOSSIBLE AND LIKE A TERRIBLE INVESTMENT)
The scenario described above is a made up fantasy and is not possible
What’s really going to happen is actually infinitely worse
First problem: You can’t burn all 4.7B UST at once because you can’t mint 156B LUNA at once
There is a limit on how much LUNA can be minted in one day
Right now, they are voting to increase the limit
This leads us to problem #2
Second problem: As you mint LUNA, the price of LUNA goes down (LUNA is diluted), which means to burn more UST, you need to mint even more LUNA, until you descend into a vicious feedback loop of all out LUNA minting madness
This is referred to by validators and people who understand the protocol as the “death spiral”
Right now you can burn $1B UST by minting 33B LUNA
The circulating supply of LUNA goes from 3.5B to 38.5B
The price of LUNA is now 0.0027
You then burn your next $1B UST by minting 1,000,000,000/0.0027 = 370B LUNA
You burned your first $1B UST by minting 33B LUNA. The next $1B UST by minting 370B LUNA
The next $1B UST would take trillions and trillions of LUNA
I used $1B chunks just as an example
Obviously the size of the burns would be much smaller as it depends on UST holders’ bags
The point is, LUNA can’t recover unless they just decide to fundamentally change how the protocol works, which would result in Do Kwan and everybody else on the project being instantly indicted for fraud
I’ve lost £15,000 doesn’t sound much to you guys but it’s my life savings, I then believed In Do Kwon that they’re close to fixing it in his Twitter speech, so I didn’t sell, I saw the printing go even higher so I sold all my other crypto assets just to try and average out my losses, now I have £8 left in the bank to last me the rest of the month, I’ll survive on my credit card, but my salary is £15 an hour.
Got back from work yesterday and went to sleep to hopefully wake up to better news, still worse news, went back to sleep for the rest of the night with a migraine, woke up with a migraine, currently sat in my truck at work, don’t even want to be here and I don’t even know how I’m going to get through the rest of the month financially or emotionally.
I’ve started from the bottom more than once, and now doing it again, literally feel like what’s the point any more, I was saving up for a deposit for a house. All gone
Same here brother. Different loss but same impact, same reaction. I believed the Terra team would react appropriately. Instead they made the wrong choice over and over again. Should have halted everything when the de-peg started and Luna really started to crash.
I don’t know how I’ll get through the month or year either. Take out loans or something to survive. In which case the next few years of my life are basically accounted for when I should be like you said, buying a house, planning a family, etc. I’m probably not going to remember typing any of this either. Feel like I’m moving underwater right now. Not even sober yet to the reality of all this and still sick to my stomach. Hard to see the point to have to start from zero and don’t feel much like living or dying. Just want to sleep and not wake up.
With the calculations shown in this proposal we can save all of the small UST users and regular people on Anchor with whatever funds the Terra team has left. Remember they sold off their bitcoin and had 3 billion dollars when they were buying it originally. Not all is lost. We need to promote the heck out of this proposal so the Terra team sees it. We can save 90%+ of UST holders.
What’s the best way to promote it? I don’t mean that rhetorically, genuinely curious how to reach people and reach Terra. Discord is closed to new users. So is Telegram. Posts by Terra on Twitter get spammed by degenerates with nothing constructive to say, hard to see this reaching many eyeballs buried among 4000 comments of emojis and broken English.
This proposal doesn’t makes any sense. UST was designed to be backed by LUNA. If the price of UST is propped up to $1 by funding then how are they going to maintain that price if LUNA is not a part of it? No LUNA= NO UST.
You’re not alone, I’m in the same boat. I feel disgusted and depressed. The past few days I couldn’t even sleep or think. I feel like a zombie. Hoping this is a bad dream so I can wake up from it. Thought I was really being conservation with a stable coin to help my family with the protocol interest but all my savings from the last 10 years of working are gone. I am praying somehow he find it in his heart to repay the “smaller” people back.
What is there to say? The project is dead it’s not coming back everyone here lost money. Death Spiral. go scroll up and read the math. People have a right to be angry… at the end of the day we can’t save neither ust or Luna
Exactly. Same state of mind here… total zombie mode. Can’t tell you how many times I have stopped mid-pacing and really wondered if this could be a bad dream. And same motivations for getting into it. Thought I was being sensible and conservative. Didn’t care if the interest rate had to change. At the very least, the smaller players - whatever it is, sub-$400k, whatever the threshold is - people who didn’t sell UST should be reimbursed and made whole.
I guess just by sharing the link around here and staying engaged so the thread doesn’t sink to the bottom of the list. I have a feeling Do Kwon’s strategy relied on him having a decent chunk of USDT/USDC to collateralize UST but it seems he wanted as much to be burned as possible before attempting to rescue the peg. It seems pretty unlikely they’ll be able to use that to raise additional funds however so I think this is our only real shot to heal this wound for the majority of users.
