Restore the peg, heal the community, no forks needed

Everybody is talking of forks and refunds the last days (myself included).

But, is it really impossible to restore the peg and compensate the community without forks and / or refunds?

Let’s take a look.

Right now the market cap of Luna is about 1,7 billion, and the market cap of UST around 11,5 billion. Both of them are tradable in many exchanges.

We need clarification of what has happened with the btc reserve or any reserve LFG and TFL have at the moment. There may be some hundreds of millions left.

I read in the discord (before it was closed…) that there was an allocation of 3 billion of Locked UST reserved for the team that has brought us where we are.

According to this twitter post of Pedro Ojeda (https://twitter.com/pedroexplore1/status/1524217002658783232 ) there were 1,3 billion UST in swap fees held in a wallet of the Oracle pool. In fact another twitter user. Replies to him that some time later there where 3 billion UST in fees. at the moment, for some reason, the wallet cannot be seen in finder.Terra.money.

According to 1188 proposal, and as per Do Kwon words there are 1,017,233,195 UST in the community pool that could be burned to reduce UST supply (or maybe back the peg?).

There could be some white knight/investor tho add some hundreds of millions to the task, it would be the cheapest most effective PR campaign some billionaire could invest in.

All this money can be put to work.

What if we:

  • Apply proposal 1164 to avoid front running.
  • We need clarification of what has happened with the btc reserve or any reserve LFG and TFL have at the moment. There could be some hundreds of millions (or billions) that could be used whether to back the peg, at least partially, or buy UST and burn it to reduce supply, which at current prices could be various billions of UST.
  • There are also billions of UST in the wallets described above that could be burnt to reduce supply or sold for stable coins to back the peg, at least partially.
  • Buy and burn usdt or back the peg, whichever is more effective.
  • With the above measures, we would have a much stronger peg than at the moment, which is non existent, as the mint/burn mechanism has been halted.
  • We can also apply a transaction tax as described in [Proposal] BURN and REMEDY fee with each LUNA transaction 💊
  • After applying these measures the mint/burn mechanism could be restarted, but with a twist. Governance should apply a max. amount of UST any wallet can mint for Luna (to a value of 1$) in an hour. This max could be 10k per wallet per hour or something like that, and that way the small investors would have priority, instead of letting whales dump billions at the same time, crushing spreads and throwing us into a death spiral…again. Whales could still get rid of their UST if they want, it just would take more time.
  • This would cause the supply of Luna to grow by the millions again, but in a more controlled way.
  • All the minted Luna could be airdropped to those that held Luna at the moment of depeg, or even better, at the bottom of the bounce from 0,7$ to 5$, to filter speculators and whales dumping. This way the growth of the supply becomes compensation, instead of more dilution for the community.
  • Additionally, there should be incentives to buy Luna despite the increasing supply as described in [Proposal] Restore UST to Peg, Decouple the Elastic Supply and Forge HEROes.

Tell me it wouldn’t work, and why.

If there’s no returning to peg the only sensible solution is twofold:

—For UST holders—

A refund as exposed in this post of Fatman ( [Proposal] Tiered repayment: 1:1 USDC refund to all UST holders up to a certain cap per-wallet using LFG funds, favouring small wallets ).

It would be possible to do a tiered refund prioritising smaller wallets, with a cap on the amount available for each wallet based on the funds available, and all the funds described above could and should be used to that end (and even more if possible).

It must be as fair and efficient as possible, as exposed in his post, all wallets should be eligible.

To continue prioritising fairness and efficiency, Whatever amount that was sold after the depeg should not be eligible. Also whatever amount was bought after depeg should not be eligible, It can be perfectly checked on chain.

It should not be and airdrop, people should be able to mint their UST for some other stable coin at 1:1 on chain, up to the available cap.

—For Luna holders and all UST not covered by the tiered refund—

Do the fork that has been exposed, distributing the new tokens to Luna holders at the bottom of the bounce (not at depeg) and to all UST from big wallets not covered by the refund.

In short, even if repeg is not possible, there are solutions, we just need the team to DO SOMETHING, with good faith and not malicious or even criminal intent…if possible.

If what I propose for repeg and community compensation were to work, Terra would be still alive, no forks needed, and that would be epic.

Wishing you all the best.

4 Likes

The only way foward is to de-couple Luna from UST, burn the supply, remove minting and make it public domain as a community coin then she can become Bitcoins Queen!

People who sold UST after de-peg shouldn’t get anything, and if Do Kwon allows this, I’ll assume his billionaire friends are the main beneficiaries who get to double dip and dilute every else’s share of UST.

Hell I wish I sold all my UST at 70 cents, it would be criminal for me or anyone to get that plus the leftovers.

3 Likes

they should get smth but not the full amount, refund/allocation should be based on the loss (and in addition we need to consider current holders).

Did you mean people who BOUGHT UST after de-peg should not get anything?

Those who held UST till after depeg all sold for a loss. What is in discussion is to make up for the loss (ie paying you back the 30 cents on each UST).

You obviously have a tiny stake in UST and do not care about people who deposited $300k+ of their life savings into UST and watched it dwindling to $30k in what was supposed to be a saving account!

Denying their right to be made whole is criminal.

I have over a million in aUST. I haven’t sold or bought any UST in the last weeks. People who bought UST after depeg should get a whole UST. People who sold should not get anything.

Worst week of my life, mentally and having physical health issues from all the stress and pain.

Losses in tokens don’t bother me much, but this loss in my “stable” coin safety net has devastated me.

1 Like

I agree [Proposal] Envisioning a path to REAL recovery for Terra with NO FORK - #6 by FaeLightCarmenum

This is ridiculous. People who sold UST after depeg should be made whole.

So you bought UST after the depeg. Assuming your loss is true, my condolence.