Re-peg USTC with Lunc supply hard capped

Governance & Proposals
1

Summary
Keep Lunc supply hard capped keep minting of new LUNC permanently disabled. minting of new ustc only enabled over 1 dollar. instead of burning LUNC when USTC is created put it in a protocal owned pool as colateral

Motivation
Prevent hyperinflation of LUNC from ever happening again once USTC is re-pegged and algorithm is enabled.

Proposal
Keep minting of LUNC disabled. redirect burn tax from LUNC to buy and burn USTC or stake the tax buy and burn USTC with the rewards. create new pool for LUNC to go in once once algo is functioning again instead of burning LUNC when new USTC is created put it in the pool 1 USTC redeemable for 1 dollar of LUNC. create on chain staking of USTC rewards come from USTC in Oracle pool and lending, 14 days unstaking period for USTC to prevent bank runs.

4 Likes
2

We should have done this at the start staking.

2 Likes
3

yes these a pretty simple ideas

4

How will this reduce the supply of LUNC?

5

first if you stake the lunc to burn ustc with rewards you lock up the lunc keep it locked permanently reduces circulating supply. once ustc is repelled you have to burn lunc to create ustc if you are constantly burning ustc and there is demand for it lunc will burn on turbo mode

2 Likes
6

But if the existing ustc holders decide to sell the coins as soon as the price becomes $1? what will happen?

7

we have to keep burning through the debt

1 Like
8

I wanted to ask what will happen to the ustc price in this case. There will be more sellers than buyers

9

soft peg not hard peg but lunc can’t hyper inflate this way

10

Some valid points worth further consideration

11

According to the Algorithmic stablecoin mechanism,
when ustc goes above 1$ mark, minting of ustc is activated on the other hand lunc will be burned

1 Like
12

All focus for working system, apps recover, repeg. Lunc price and supply no matter at this moment.

13

Let’s say ustc hit $1.02. The lunc combustion mechanism is turned on. From what stocks will burns occur?
How is liquidity in general? Is this information public? Is there any information about the money supply other than what is locked in staking? Who is the beneficiary of the collapse?

1 Like
14

Also we can start burn our USTC CP and Oracle, its will be good news, good for volumes and prices both tokens. LUNC grows well on any news that helps repeg.