The goal should be to rebuild, however slowly, the marketcap of Luna to eventually support UST again. Now that both Luna and UST marketcaps are roughly the same this process can begin. Assuming LFG and their allies have some ammunition left, they should carefully and slowly manage the price of Luna. While it seems impossible to most onlookers the thin order books makes it quite easy to create fantastic short term gains which in turn will attract new speculators.
The attackers will possibly still be ready to pounce so a re-org may still be desirable to create this outcome. Using some or all of the ammo to re-imburse UST holders (starting with the smaller bag holders as most have suggested) would also go well with this idea but that assumes there is enough capital on hand to do so.
While a re-org that takes UST out of the equation entirely might suffice, the real objective should be to keep the eco-system whole and rebuild slowly. It’s a mistake to try to rush a solution but a slow methodical approach can succeed. I’ve been thru disasters like this before (2017 DAO Hack for example) and there is always a solution but its never quick.
It takes a lot less capital to boost Luna into big % gains right now and that is where this should start. I say this as someone who has very little Luna and over 3mil UST in Anchor right now. As much as I would love to have someone swoop in and reimburse me, even at a deep discount, it’s much smarter to start with Luna and create the market sentiment that its possible to make big gains on it. We are all essentially ICO investors now, except Terra already has a user base and plenty of utility. While the attack has and will continue to hurt for some time, if Do Kwon and LFG don’t throw in the towel and run off with whatever they’ve got left, it is possible to save the ecosystem.
Luna is extremely volatile right now and that’s an opportunity, not a problem. I only hope the team managing Terra understands how to navigate that volatility properly.
PS: Chain analysis can also identify the attacker accounts. I propose the validators use governance to lock up any and all Luna and UST associated with the attackers and let the community vote on what to do with those accounts later. Doing this will prevent them from running the attack again and would hasten a recovery at the attackers expense. I’ve worked with groups that can perform such an analysis and would happily finance the costs myself if the community desired to go this route.
PS: Chain analysis can also identify the attacker accounts. I propose the validators use governance to lock up any and all Luna and UST associated with the attackers and let the community vote on what to do with those accounts later. Doing this will prevent them from running the attack again and would hasten a recovery at the attackers expense. I’ve worked with groups that can perform such an analysis and would happily finance the costs myself if the community desired to go this route.
Very strongly agree with this.
It’s also an intriguing idea to try and take advantage of Luna’s new microcap status - I am going to think about that one overnight.
furthermore $UST confidence also comes hand in hand with $LUNA confidence … they could simply pump $LUNA even with a small fraction of their reserves … assume they have 10 billion then it could even be 100 million a day for the next week … tell me you wouldn’t respect a 100mil pump daily ? and that it wouldn’t have positive externalities to the ecosystem at whole.
e.g. value $LUNA goes up … $UST value goes up … people believe in $UST to repeg … people purchase $UST … and so on
all the while we keep burning at the rate we have been burning … yesterday $LUNA supply shrunk ~5% (fact check pls) and if we can keep shrinking $LUNA supply by these kinds of amounts for the coming days we are looking more and more healthy everyday.
assuming the 5% daily decrease in $LUNA supply and the buyback scheme … I think TFL/LFG could remove 50% of the $LUNA supply in just the first week … spending only 700mil … seems to be a good idea
last thought is what about people who want to voluntarily burn say 1000 $LUNA for 1 new token …
e.g. cap supply of newToken at 1billion … if this cap is reached at a mint rate of 1000:1 then community will have removed another trillion of supply from $LUNA. Then maybe can even provide some liquidity to this newToken such that some profits can be taken and reinvested into $LUNA to further continue the process … until $LUNA reaches
this would mean in around one week time we could go from 6.5 trillion in circulation to maybe around 3 trillion … it’s not “problem solved” but it’s a step in the right direction and it’s an inexpensive step
Yes, reconfiguring the tx and distribution models should go hand in hand. Albeit I suspect most of the volume are on exchanges where the transaction fees will be captured by the exchanges themselves.
can you explain how rise of luna price helps in matter of getting the ecosystem healthy again?
As long as there is so much cheap “overhead” UST available on exchanges off-chain, it’s actually impossible to reactivate the on-chain swap which is needed for a healthy ecosystem.
If UST is bought cheap (off-chain exchanges) and burned and the on-chain swap gets some adjustments, Luna price will rise again, since the supply will decrease dramatically.
The on-chain swap was always a bad idea. Swaps should be market based, so they should turn off on chain swap, and rely on an AMM to determine Luna/UST pricing. In fact they should have a single pool that they support with their “reserve” to accomplish this outcome with fees going back to the reserves so it is at least replenishing itself somewhat.
This whole plan relies on LFG and their associates actually having reserves and the grit required to invest them during these uncertain times. More likely they try to save their own skins and kill Luna tho.
Why do you think the on-chain swap is a bad idea? Trying to understand.
“Just” because of the issue that you could buy cheap UST < 1$ (off-chain) a couple of days ago und swap it for Luna worth 1$ (letting the supply of luna explode) or are there other issues as well?
Put some thoughts here, maybe you want to add a comment
Basis Cash (BAC) >>> Luna >>> Luna 2 >>> thất bại tiếp theo. Và mỗi khi hàng tỷ đô la và mọi người xuống địa ngục…, các gia đình tan rã, họ thất bại và định xóa trò chơi, chơi một trò chơi mới. Dừng lại ngay tại đây!
họ, những nhà lãnh đạo cũ dần đến thảm họa của Luna đang tìm kiếm một ngã ba để giành lại quyền sở hữu sau khi bỏ chạy và đánh lừa tất cả các nhà đầu tư và những người nắm giữ cũ. Họ tiếp tục lừa những người nắm giữ mới cố gắng DCA để cứu Luna. Loại bỏ tùy chọn fork ngay lập tức bằng tất cả khả năng của bạn và tẩy chay Luna v2 nếu nó ra mắt vì họ sẽ in Luna 2 và lợi dụng cộng đồng một lần nữa.
