TLDR: The 25% allocated to UST holders / 10% to Luna holders at the current “Launch” snapshot makes zero sense. Instead, take the “Launch” snapshot at some time after the depeg but before the current plan was announced.
PROBLEM: People who held UST on the way down are going to be VERY heavily diluted by others buying in at this point. Those who bailed out of UST in desperation at a huge loss when there was no clear direction from TFL will get nothing. Why reward people who are buying now? Clearly no one buying currently is trying to save the network; they’re hoping to get an airdrop. The current proposal screams of someone trying to create exit liquidity by pumping up the price of Luna and UST leading up to the snapshot. Why else would anyone announce the exact date and time of the snapshot in advance? Frankly, this is just gross.
PROPOSAL: I understand the desire to reward people who did not sell, or who supported the network in the downturn, and to exclude those who exited with only a small loss. To do so, I would propose taking the “Launch” snapshot at random time somewhat after the depeg but before the current plan was announced.
This should apply to the 10% allocated to Luna holders in the “Launch” snapshot as well. There is good reason to reward loyal users who tried to buy Luna on the way down to save the network; they believed in Terra are more likely to stick around. There is NO reason to reward people for buying Luna now. We are simply making the rewards for people who tried to save the network trivially small. Again, this current proposal screams of trying to drum up exit liquidity.
Clearly there is no one proposal that can satisfy everyone. But as it stands the people buying in now will end up owning a disproportionate share of the network; there is no good reason to believe they will be loyal users. While it is clear there is no money available to make UST holders whole, there is significant value to the Terra brand in trying to make things right, giving loyal lunatics vested equity in the new network. There is negative value to the new network and brand in rewarding purely speculators on the old network.