With new knowledge that LFG funds are basically gone, we need to implement a solution immediately
With many of the old proposals created assuming that LFG still have any real reserves, we need to start thinking about using the coin and only the coin. The rest of the proposals are now almost fantasy, how can you do a $1.5 billion buy back with $100 million of coins?
UST needs to be thought of as a debt owed by Luna Holders. If the debt is never going to be satisfied, then Luna is likely doomed to fail as too much money has been sucked out of the system and too many lives have been ruined from the de-peg of a “stable asset.”
The Luna “Ecosystem” that everyone wants to save is premised on UST existing and that trust in this system must be restored. There is no sense saving an “ecosystem” that is just another random coin with little use case and a failed trust. So, pretending it can just be forked and solved is not going to actually fix anything.
Proposed changes
A tax 15% on all Luna transactions should be implemented. Of that tax, 7.5% should be burnt to help Luna supply correct and 7.5% should go to a pool that is paid equally to all UST Holders of record once daily. This way, there is now an extra incentive to hold UST and a way to add value to it. This value increase should allow it to slowly re-peg as it should.
Ongoing, Luna will only earn stake yield when UST is pegged at the $1 mark. Anytime a depeg of over 3% occurs, this system can go back into place. This should help stabilize the system.
This doesn’t fork anything, just lets the system correct as it sits and tries to revitalize the system both now and for ongoing UST peg.
Proposal
Check out the proposal here:
https://station.terra.money/proposal/1320