LUNA is the only channel for financing. ($LUNA price to guarantee project credibility and community confidence)
Stabilizing the price of LUNA can bring about a positive chain reaction of UST and boost market confidence and community confidence.
Don’t immediately invest in the market to rescue the market after financing, and should raise a lot of funds. Public display and announcement of rescue plans.
The current approach to saving UST is clearly a death spiral. about to collapse
If you really love the industry, proceed with caution.
Yes, I agree. What they are doing now isn’t working. Sacrificing LUNA like this is no solution. In the end it will lead to the death of both LUNA and UST. If LUNA is worth nothing, inflating can’t help you anymore to save UST.
Blockchain enterprises only have the project token as the only channel for financing. UST itself is an algorithmically stable coin, and the price drops to 0.1-0.9 without any difference. The real panic is that UST reserves no longer have value. UST no longer has value to support. solve this problem. There is no need to repurchase UST to the market in large quantities. The market will naturally correct.
The irreconcilable difference with saving LUNA is that depegged UST holders can mint LUNA at any time. This causes LUNA’s dilution to go up. LUNA can only help reduce small depegs. For large depegs we need to prioritize clearing out the bad debts first. The bad debt holders are the most willing to pay at any cost to dump UST. If we offer bad debt holders higher than the market rate to buy LFG Reserve stabilization funds which could be USDT, BTC, ETH, or whatever, then these bad debt holders do 2 things for us:
They clear out USTs into the reserve so the UST supply goes down and thus UST rises in value
When the UST repegs we gain more money to avoid a bigger fallout next time, and we can burn some of this money earned to help LUNA holders increase their value
During the depeg all staked rewards should go towards burning LUNA to help maintain LUNA’s price. Alternatively we can burn UST to help it peg faster, but it seems better to help LUNA holders wherever possible.
I watched a lot of videos and read chats, and I noticed that everyone was interested in the Luna. Almost no one talks about UST, these days everyone is worried about the safety of the Luna. Do you understand? I think it’s necessary to save the moon now.
Ya. I agree. We need to look for hybrid solutions when Luna is less than UST. We have minted now 250 billion Lunas and i don’t think it has helped anything. Had we tried to save Luna we could have pegged UST by greeting funds from VC’s.