I am sure you moved your funds after this happened. So having a snapshot at/around the de-peg AND knowing your current balance would make you qualify to the airdrop.
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There’s only about 1.8B or so left in Anchor and if we prioritize just the small holders which are 90%+ of the users it should be enough. They had 3 billion dollars worth of money/bitcoin reserves not too long ago. I don’t think they deployed all of it.
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that would be an awesome thing. The thing is I have UST on binance (I transferred there 2 days ago). The full balance is untouched.
so even if 1.8B is on Anchor they would need to take care of the ones who left the way, but still on the train.
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You r right, LUNAv2 will not last a day (if we try to move that way now)
TFL needs to try Long hard way than just move to the short cut.Project are dieing but trust may not.If this project can survive no matter how long it takes.Trust will follow you to LUNAv2. Ortherwise…
Hi all,
I have been a Terra hodler for over a year now. Before de-peg I had Luna staked with Terra Station worth many thousands of dollars at recent ATH and also thousands of UST deposited in anchor (no leverage/borrowing etc). My funds are still exactly where they were before the de-peg as I want to believe Terra will survive this somehow.
I have heard a few different idea’s being floated by the community and so far I believe this is the best one if the Terra network isn’t going to be significantly re-invented.
My understanding is UST is central to the the Terra eco-system as its been designed, therefore we need UST to be stable and pegged to 1 USD. Luna was always intended to be the volatile and speculative asset. The only reason to my understanding I ever had thousands of dollars in Luna was because of UST holders/borrowers.
Therefore if Terra is to go forward without significant re-design we must make good on those who held the asset that gave Luna it’s value. I agree that if it is technically/financially possible we need to do the ethically right thing and save the small and medium UST holders first. This should also hopefully, as previously mentioned, show that the Terra team and community has integrity and can be trusted.
I have resided myself to accepting my current losses but I have not given up hope that this amazing eco-system and community will prevail if we do the right thing even if it is hard and won’t please everyone at least in the short term. If you believe in a better money, if you are tired of being a slave to the corrupt financial systems, Terra must survive.
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This wouldn’t be a governance proposal, I don’t think - it’s more of a suggestion directly to TFL/LFG about what to do with their money, ie. how to ‘defend the peg’ (IMO, the best way to defend the peg is give people their money back 1:1). LFG pretty much has free reign over this (there was no voting process when they decided to loan their BTC to a market maker).
The reason a snapshot + compensation doesn’t work is because there are people who have already moved their UST off-chain and sold it on the open market. I will try and explain the refund situations a little better.
Situation A: You saved 10,000 UST in Anchor and did nothing during the depeg. Your 10,000 UST balance will be snapshotted, and you will be allowed to return it to TFL and redeem 10,000 USDC. No additional purchases will be necessary since you have all your UST and didn’t move it.
Situation B: You saved 10,000 UST in Anchor, but panic sold it when UST depegged to $0.50. You now have 5,000 USDC and no UST. When the snapshot happens, you will have an allowable refundable balance of 10,000 UST, but you must buy back UST on the open market in order to get the refund. This prevents you from making 15,000 USDC when you don’t deserve it.
Of course, due to the nature of the markets, there will be people who will have to buy high & sell low, or sell low & buy high. This is the risk they took when they sold their UST, and I feel this solution is the most fair/equitable.
You are right - the blockchain operates with LUNA as a governance token. I don’t know if you’ve noticed yet, but that mechanism was completely ruined when LUNA crashed to dust and anyone could manipulate governance. There’s a reason the blockchain was frozen. It is now essentially centralized (which is fine… the system is toast anyway).
Returning 50% of all UST is impossible. That would not be the play here. But, paying back >50% of users is completely possible. We would need 5-10% of the UST market cap to make most people whole. If you go through the post (and first reply, where I’ve detailed some numbers), you’ll understand what I mean. It’s basically leveraging the smallest amount of money into maximal good for the community, and it will likely save lives.
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No its both PoS AND governance. That’s why terra shut down today and reopened later. The hyperinflation of luna created a security concern that someone could purchase enough luna and take control of the entire blockchain.
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Situations C: You saved 10.000 UST in Anchor and did nothing during the depeg. You moved your 10.000 UST to another terra wallet (exchange) and did nothing.
what do I get? 
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This situation is pretty much the same as A. Your allowable refund amount would be 10,000 - you would just need to pop the UST back on-chain, or wherever the refund will be processed. It would have to be a site that TFL/LFG sets up.
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I love it, I want it
I do hope the TFL/LFG team can make this happen.
It is good to see that after the 5 stages, (deny, shock, disbelief, anger, acceptance) decent community members are trying to find the way!
“Miners play a foundational role in the security and stability of Terra. They provide the former by participating in PoS consensus.”
page 6 of the white paper. So luna has two functions:
- people can use it to make changes to the protocol (governance)
- it is used by miners to secure the network and tell the network what nodes to process the transactions on.
Terra can function as an L1 - just like Ethereum (also an L1)… luna is analogous to eth here… except the terra blockchain uses proof of stake and Ethereum uses proof of work… which actually makes the terra blockchain superior in terms of transaction processing time, energy consumption, and transaction fees. What TerraForm Labs built here was essentially the equivalent of if Ethereum had a stable coin that was directly pegged to eth. If that became depegged, would you shut Ethereum down? no. So you can’t ‘kill luna’ without killing the blockchain and all of the dApps that are on it.
if you want TerraForm Labs to be able to ever pay you back for the UST loss… they need to shore up some capital and issue a collateralized stable coin. If they kill their L1 blockchain, they’re toast and will never be able to do that. UST holders under the impression that Luna is simply just exit liquidity do not even realize the value of the L1 that has been built here… and the potential for it generate capital to eventually pay back the losses on UST.
I love this proposal, t saves most users, great morale for community.
You make some good points. Reviving LUNA at some level was plausible 2 days ago. The events in the last 24 hours have, IMO, changed things significantly. I don’t know how meaningful governance can occur when money is constantly being leeched out of LUNA and the coin is becoming asymptotically worthless.
Also, I apologize, maybe I was not clear with the exact message I was getting across when I said “LUNA is dead” - I was referring primarily to the price. There’s a lot of discussion going on where LUNA holders are trying to get their money back. I believe that’s a fool errand, since value is absolutely destroyed and the multiple levels at which buys were made make it impossible to make everyone whole. There just isn’t enough money for it and even less incentive. LUNA was intended to be a speculative token anyway, so I see why TFL is prioritizing UST.
Maybe the blockchain can be revived with a fork or a new coin. That would be from a technical standpoint, which I’m not an expert on and probably shouldn’t comment on. From a value standpoint, there is no point reviving LUNA, and we too should focus on UST. Honestly, even if the Terra blockchain is killed forever, something has to happen with the leftover money, and this is the best way to dole it out.
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is there an puroposoal on station yet ?
How many funds does LFG have remaining?
From what I’ve read on Twitter they are looking at creating a new coin and airdropping it to people at snapshot
I think your proposal is better re USDC
How would we get this proposal to pass without delay?
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situation D: you bought UST on Binance 2 weeks ago to stake there , never sold and you can provide proof of everything you said what will happen ( i’m desperate thats all my life savings)
People have spoken about funds on Anchor and aUST to reimburse for. If you are building a plan to pay back holders, what about the addresses sitting at Celsius or at other lenders? Before 9th of May, I had 70% ish of my UST on Celsius and the rest on Anchor.
Could this clause be considered?
Cheers for the discussion!
me too
i have UST on Anchor & Cex becuz believe this stable
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In order for them to save the L1- they need to actually buy back or implement a way to accrue and burn the excess luna tokens that have been minted. Not to save speculative investors bags but because the blockchain is not functioning the way it should right now - it was shut down earlier because the amount that has been minted easily enables a person to purchase enough luna to relatively inexpensively to either a.) take over all the validator nodes on the blockchain or b.) pass governance proposals that alter the functionality of the blockchain… and bad actors are out there and they will do this… so its a security concern… that’s why when they turned it back on today, they turned off delegation… i.e. no new tokens could be staked on validators because they were worried about the take over the blockchain.
I am a developer and forking an L1 is not something you should ever do lightly… especially if you have wrapper tokens on other blockchains and major exchange listings. TerraForm Labs is better off trying to salvage this one and use it to generate capital that would enable them to issue a collateralized stable coin to ust holders. What I would do:
- Stop arbitrage between UST/Luna. Shut off any mechanism that mints Luna.
- At this point UST will collapse
- Any capital TerraForm labs has should be used to buy back and burn the Luna tokens to secure the blockchain enough so that its useable.
- Implement an additional fee on top of the miners fees that are paid when processing a transaction. This fee will be taken out in LUNA immediately converted to wLUNA on Ethereum, sold for USDC (the best off chain collateralized stable coin) and added to a on-chain asset treasury. As USDC is added to that treasury, a new UST coin can be gradually issued to holders of the old UST until the treasury has accrued enough capital that matches the debt. Once that occurs, the fee just becomes a burn on Luna until enough are removed to bring us back to pre-spiral supply levels.
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Same I bought into Luna and I didn’t sell, the message of hang in there, we have a recovery plan, it’s going to be quick, I kept my Luna when I could of sold for £9,000 yet I ended up buying even more when the price rocket down just to save some face and cut my losses a bit, I believed when they said Luna is here to stay.
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