[Slow Staking] 70,000% APY as a solution to save both LUNA & UST holders

The community has already accepted that UST in its current form is a failed project and needs to be replaced by a better decentralised money, however the existing UST holders still need to be redeemed. Without redeeming the UST holders, faith in the Luna community and project will be lost. The Luna community and ecosystem still has a lot of value which needs to be preserved and grown.

Current staking return for Luna is 1173.36% per annum. While the staking ratio is 0.01%.

Edit: The current staking return has increased to 70166.06% per annum while the staking ratio is the same.

  • Gradually allow people to stake - something similar to how STEPN releases limited number of activation codes daily, a limited number of coins could be allowed to stake on a daily basis.
  • The ultra high yield will spur demand for LUNA, provide the much needed capital and restore faith in the coin and the project
  • Disable minting of new UST permanently
  • Periodically allow a limited number of UST to be swapped out based on market conditions - this should be a one-way irreversible process

it has not failed there is just too much demand for usd.

idea: limit UST → LUNA minting to a reasonable % of LUNA Market cap!

it would provide slow exit liquidity to ust holders & restore the peg without overburdening the ecosystem


The idea is good and it may have worked had it been implemented prior to the death spiral. But currently minting more LUNA is not an option - there’s just too much supply of LUNA in the market - 6.91 trillion as of this writing - which is killing both LUNA & UST holders.

The idea largely remains the same: to get LUNA to a reasonable % of UST Market cap, which will allow exit liquidity to UST holders while still growing the LUNA ecosystem - however, minting more LUNA to increase its market cap is not an option.

Instead introducing something like ‘slow staking’ which will incentivise LUNA holders due to the high yield is a much better approach to increasing Luna’s market cap in my opinion.

@dfunk there IS a market for UST & Luna, but it is too small to absorb 11bn UST right now. Hardcapping how much ust->luna can be minted solves the issue. this way ust holder get their money back but with uncertain timing. let ust exit be capped at a % off luna price x luna supply.

Just to give you some feeling for the extremes: letting 100 ust be converted to luna / block should be no problem - the ecosystem can absorb this.

finding 11bn usd right now is impossible

https://terra.smartstake.io/ust → you see the slope of ustSupply? you have to make it variable according to Luna Market Cap

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A lot of people might not be okay with the indefinite timing - which in theory could be never.

I agree it is hard to find that kind of liquidity right now but not impossible. Luna market cap needs to grow 10x from here to get that kind of liquidity - tough but possible with the right incentives.

A 1000%+ annual yield on staking would be giving the community the right incentives to achieve the 10x growth from here while allowing UST holders to exit. Albeit this needs to be slow and gradual.

What about burning most of the Luna and some UST while disabling minting? Wouldnt it be better?


I believe this proposal could help restore UST and thereby faith. It’s important we restore as much as possible to UST holders.


we need a compromise between UST and Luna holders. If everyone gets to recover say 40-50% of what’s lost, at least everyone becomes whole and restores trust.

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@DrbUST there is already a proposal to burn UST from the community pool:

However, this will absorb only around 10% of the liabilities. 90% of the liabilities need to be settled by aligning incentives of both LUNA & UST holders so as to make it a win-win situation for both and not a zero-sum game.

Slow staking is a solution that does that.

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We need to burn both Luna and UST as well but with a higher rate for Luna. Its over-supplied!


If Luna is burnt at a high rate and it’s price doesn’t increase at the same rate, Luna’s market cap will go down and inhibit UST holders from getting an exit.

Rather than burning the supply, the better option is to create demand for it by offering 1000%+ annual yields on staking. This will not only increase demand and therefore the price of LUNA but also provide UST holders an exit.

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any news of a burning programme will cause an influx of buyers. Any announced target burning such as 7.5 trillion over 6 months will cause a frontrunning of the price back to “normal”

A mixture of burning and yield would work

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Yes it would. But burning Luna would not help UST holders (LUNA were minted in the first place to settle UST debt), but a high yield will help both LUNA as well as UST holders.

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aunque incrementarias la participacion dentro del stake, generarias una mayor oferta causando que su precio bajara mucho mas.
Esta solucion es viable si ese rendimiento lo dejaras fijo en plazos de 5 años donde repartieras cuponer con los rendimientos de forma periodica, congelando gran parte del suministro circulante y subiendo el precio

For those who don’t speak Spanish:

although you would increase the participation within the stake, you would generate a greater supply causing its price to drop much more.
This solution is viable if you leave that yield fixed in terms of 5 years where you distribute coupons with the yields periodically, freezing a large part of the circulating supply and raising the price

Excellent point.