[Proposal] to restore Terra and communities holdings

Governance & Proposals
1

Summary
Fix the faults in the algorithm, to prevent any future attacks and restore all states to a pre-attack (2022.05.07 23:00:04+08:00), with fair opt in for all who sold.

Motivation
To restore wealth to all UST & Luna holders via reversal. Everything in the blockchain is recorded and thus can be restored.

Proposal

  1. Fork Terra and Luna - to a new contract that patches the algorithm issue, including adding the possibility of trading halts, to prevent future issues.

  2. Reverse every transaction before the de-peg attack. (as mentioned by Do Kwon, 2022.05.07 23:00:04+08:00)

  • 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. If before the de-peg 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 for a staking period, for their restored balance. And while doing so 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 hold what they have and the current tokens are left to trade as legacy old tokens.
  1. Optionally, after the staking period, introduce a tax on selling of 7% tax that tappers off by 0.5% each month (where by the tax will be reduced to 0% after 14 months). To allow people to sell out if they wish, but also not rush to allow this protocol to stabilise. All sales tax should go back to holders.

** However the final amount they receive may not be the exact same amount as some sellers may not choose to opt back in, for if some sellers don’t opt to buy back in and restore the price won’t restore completely. To execute this, all of these transactions from sellers who choose to opt back in, will have there transactions executed in reverse order.

I believe this will work, vote it up if you believe so, and please add any constructive criticism or improvements as comments.

Terra: terra1t46wjrr9t8lmgjl5h6mlzr8puf2ld59rxek6av
Ethereum: 0x1a91080A3Fe4eD7141DE450c6FA50dDb0f4d1df0

2

An improved version on this: