Stability & Limitations of LUNC & USTC

Terra Classic indefinite Stability Tax & USTC Creation Limitation Act

Building civilizational, organizational, and individual wealth is the reason for work - it’s important our money retains its value {if it doesn’t increase!}, is secure in our possession, our use of it is private {unless shared or hard-evidence of unethical behavior exists), and it’s supply is capped.

The passing of this proposition will result in the indefinite stability of the values of both LUNC & USTC by (1.) indefinitely taxing all LUNC transfers to offset newly created tokens to maintain a 10,000,000,000 max supply of LUNC after the burning of passed proposition 3568 is complete and by (2.) limiting the creation of new USTC (max supply of 10,000,000,000 USTC) by pegging it to the gross weight of the total supply of discovered physical gold.

Stable-coins that match the value of national fiat debt-based currencies are unstable because the supplies of those debt-based currencies are inflated by actions like usury and their values are then deflated by that inflation when met with a naturally limited demand/population of users (consistent instability).

Taxes on all transfers of LUNC that are equal to the collective amount of LUNC being created by staking or lending with interest are necessary for a true stable max supply of (10 billion).

Taxing LUNC transfers also encourages people to hold LUNC tokens and hopefully stake them (PoS), vote on proposed adjustments to the system, and propose new ideas to vote on as they gain staking rewards.

To gain access to staking and governance, people will demand LUNC tokens and that demand will incentivize the selling of them (profitable) and initiate that burning of tokens to equally match the creation of tokens.

Not taxing USTC transactions and limiting the minting of new USTC encourages people to transact with USTC (promoting economic engagement) and it encourages saving USTC to preserve wealth with little risk! People can still lend USTC - to the less fortunate - without charging interest (philanthropy). Staking USTC will be indefinitely banned.

As already mentioned, to supply a growing demand/population, pegging the USTC to the gross weight of all discovered gold using an oracle (244,000 metric tons so far equaling 10,000,000,000 UTSC) will enable the creation of new USTC as gold weight is expanded by an expanding population that discovers more gold.

The passing of this proposition will limit the creation of new USTC’s (other than through the gold gross weight pegging method) and will stabilize the supply (10 billion) of LUNC indefinitely by continually taxing all transactions equally to the continuous newly minted supply based on active contracts and updating based on canceled or new contracts.

Thoughts?

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REVISED VERSION 2.0

https://classic-agora.terra.money/t/terra-classic-supreme-the-terra-world-order/46910/19