Summary
Opt-in roll back of events / Fix the faults in the algorithm / Re-buy crypto reserves that were sold. - All of this can be restored with minimal impact.
Motivation
To restore wealth to all UST & Luna holders via reversal.
This proposal will also help the greater crypto community at large, as the plan also involves rebuying large amounts of the reserves that were sold. This will raise the confidence through out the community.
Proposal
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Fork Terra and Luna - to a new contract that patches the algorithm issue, including adding the possibility of trading halts, to prevent future issues.
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Reverse every transaction to before the de-peg attack. (2022.05.07 23:00:04+08:00)
- Bag holders get their value restored
- Every person that withdrew their token has the option to buy back at the same rate that they sold out at. (ie. Before the de-peg if they had $1000, and they sold out during the de-peg for say $20, it will costs them $20 to buy back in to have $1000 again). **
- All new buy and sells are halted for 2 weeks to allow this to happen.
- All restored wallets, must hold their restored balance for a staking period of 6 weeks. And while doing so will continue to receive all standard interest and rewards as per-normal.
- Any one that bought in after the de-peg attack, can be offered a 1 for 1 refund during the 2 weeks halted period. Or they can choose to continue to hold what they have and the current tokens are left to trade as legacy old tokens.
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The remaining amount that is not rebought by sellers after two weeks, shall be offered at the same price to the public at an average price of what is outstanding.
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As the sellers buy back in, the reserves that were sold by the Terra group should be bought back, this will also help lower the effect on the crypto community as a whole and restore the value of UST by restoring reserves. So buying back the 8,000 bitcoin that were sold, etc.
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After the staking period of 6 weeks, introduce a tax on selling tax of 6% that tappers off by 0.5% each month (where by the tax will be reduced to 0% after 12 months). To allow people to sell out if they wish, but also not rush to allow this protocol to stabilise. All sales tax should be used to also continue to buy back reserves, once reserves are met it should be used to restore the value of UST to USDC/USDT pegging by buying UST and if this is met it should be distributed to all wallet holders proportional to holdings.
** The final value of UST to USDT/USDC after the buy back period, would be proportional to the number of people that buy back in (their weight of tokens vs how many were sold).
This will work!, vote it up if you agree, and please add any constructive criticism or improvements as comments.
Terra: terra1t46wjrr9t8lmgjl5h6mlzr8puf2ld59rxek6av