Reimbursement of Lost Fees between Sept 21 - Sept 28th

Governance & Proposals
1

Introduction

This is a community spend proposal for the reimbursement of lost fee’s during the period of Sept 21 - Sept 28th. On September 21st, the 1.2% tax burn was activated on Luna Classic. Transactions on testnet were successful, but transactions on columbus-5 had gas computations straddling the border of success and failure. Thus, some transactions failed and the tax was levied while the transaction did not go through.

Dedicated work by StrathCole has identified the transactions that failed from Sept 21 to Sept 28th (when the station wallet was fixed). The following shows the number of transactions that failed.

“txs” : {
“/cosmos.authz.v1beta1.MsgExec” : 4,
“/cosmos.bank.v1beta1.MsgSend” : 10460,
“/cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward” : 1,
“/cosmos.gov.v1beta1.MsgSubmitProposal” : 6,
“/cosmos.staking.v1beta1.MsgDelegate” : 2,
“/ibc.applications.transfer.v1.MsgTransfer” : 1,
“/terra.wasm.v1beta1.MsgExecuteContract” : 453,
“sum” : 10927
}

Reimbursement Details

We are requesting the total amount of incorrect taxes charged be reimbursed via a community pool spend to the users that lost funds during this time; the total reimbursement is 295M LUNC.

There are 9 wallets with over 5M LUNC in reimbursement that total approximately 165M of the 295M reimbursement. Several of these wallets have been identified as CEX wallets (coinspot, crypto.com, etc), and others are suspected to be unidentified CEX wallets. Simply sending reimbursements to these wallets is not advised, and thus we will make reasonable efforts to contact the CEXs to figure out the best way to reimburse them. If these efforts fail, we will simply return these funds to the community pool.

Additionally, there are several hundred wallets that have reimbursements of under 10 LUNC. Due to the cost of transactions and tax fees, any wallet that lost less than 10 LUNC will not be reimbursed. For the remaining wallets between 5M and 10 LUNC (2,214 wallets), reimbursements (sans gas and 0.2% tax costs) will be processed as part of this proposal.

The code to process the reimbursements has been written and can be seen in the following github repository,

There were two methods explored for this distribution. The first is a smart contract forked from dfunk’s 4080 distribution proposal. While this was our first approach, it did not give the flexibility we wanted in the reimbursement process.

The second method is the solution we will use - a python script located here,

A test of the distribution can be seen in the notebook on TestNet.

Distribution of the lost fees can be seen here, please note this does not apply to validator delegation fees during the September timeframe.

A previous attempt to solicit missing entries on twitter was fraught with hundreds of thousands of scam-like responses. Thus, the list scraped via chain analysis will be used as the final list. To verify the lost_fees.json list, please see the chain analysis code here.

Procedure

  1. Community Spend proposal of 296M LUNC to the Terra Grants Foundation Multisig (extra 1M for taxes)
  2. Create new send wallet for python script to use for distribution
  3. Send 296M to the python script wallet
  4. Algorithmically reimburse 2,214 wallets between 10 LUNC - 5M LUNC (~131M LUNC)
  5. Search for and contact users of the top 9 wallets with > 5M LUNC for manual reimbursement (~165M LUNC)
  6. Return any excess amount that cannot be identified back to the community pool
  7. Post a list of wallets and tx hashes as a final accounting, additional information will be provided for the top 9 wallets distributions (the ones over 5M).

Please share any questions, comments, and feedback.

10 Likes
3

And why return them to the general pool? Another trick of illegal coin printing

4

Spend proposals are distributed from the community pool, no new minting is involved. It is only fair those people get reimbursed , if you go to the store and they charge you double by mistake you would like your money back, wouldn’t you?

1 Like
5

and, it still shows the team’s commitment to repairing errors that were not the fault of the users and shows more confidence in helping to revive the currency.

Any slip, binance cancel the help for project, And the coin would be 10x further away from recovering at least 1USD (or death)

2 Likes
6

One question. Terra Grants Foundation - what’s is results of work?

2 Likes
7

The basis of finance is trust. Compensation for users lost due to chain errors is a important issue for chain reliability. We can see that the L1 team is operating in a moral and responsibility by this proposal.
Also the community will have confidence in the LUNC chain that they can protect its assets.

9 Likes
8

No no no

1 Like
9

No no no more money out from the community pool​:frowning::frowning::frowning::frowning:

1 Like
10

Sorry. Wrong means I understand

1 Like
11

Hi Ed, looks good. Couple of questions -

  1. Wallets between 10 LUNC - 5M LUNC, reimburse automatically to 2214 wallets. Sounds good.

  2. Wallets <5M LUNC, top 9 wallets will be contacted and reimbursed. Have below questions -

a) If unable to contact top 9, return to community pool?

b) What about the other wallets with <5M LUNC other than top 9? Will they be contacted or directly transferred to their wallets?

Thanks team for the work which was put together here!

12

@ek826 our CP not active growing.
Maybe we can start do something REALLY important? Like USTC plan or dapps recovery. Thank you!

5 Likes
13

@ek826
Would be better for the community to start thinking about re peg USTC as we are tired of lots of ideas without growing the blockchain if we don’t change direction we might going to be the next shibainu scammer unfortunately :cry::cry::cry:

3 Likes
14

My full support. It’s a question of chain credibility and these 295-6M’s is a nothing. Returning ownership to users is key if we want to regain credibility. Such an action will be appreciated and will give us reasonable grounds to walk with our heads held high and with a clear conscience that we have done everything in our power to repair the damage done by … the FED … Return to everyone his property, then people will understand where to look for help and real support in these difficult times.

LUNA ARMY - Robin Hood
LUNA ARMY - Robin Hood1281×720 36.2 KB

1 Like
15

Everything goes to that. A failure of Q4 roadmap caused both tokens to fall. Many people were hoping for a ustc plan in Q4.

1 Like
16

Thank you for doing this. I don’t expect to get much from this effort but whatever I do receive I’m going to donate to the TGF.

17

will you reimburse my lost rewards since my funds were stuck on osmosis till recently and I couldn’t stake and earn 20% for many months?

18

I would like to move forward with the smallest wallets in this spend proposal. I have only identified one person in the top 9 wallets as an individual and am requesting for a community pool spend of 138M LUNC at this time to reimburse 2,215 wallets. (131M + 6M (one individual in top 9) + 1M to cover chain tax).

1 Like
19

Why wasn’t this done 2 months back? The community pool currently has less funds in it to do this. Back then we still hadn’t funded the L1 team. We could have done it. But right now? And why now? After 2 months? Is this account hacked or something? What’s happening exactly?

1 Like
20

Why not burn the tokens permanently. What is the need to return a fee that was supposed to benefit the burn. I am one of those but prefer that they be eliminated from circulation not a refund. I’ve always supported your ideas but unfortunately I don’t agree with this one

3 Likes
21

It’s just a waste of time, absolutely useless and unimportant proposals from @ek826 and @Vegas! Go work with repeg, network is dy ing! Even at green markets.

1 Like