Terra Classic Restoration Proposal

Terra Classic Restoration Proposal:

  1. Permanent Halting of Minting Tokens (Luna Classic & UST)
  2. Impose 3% Burn Tax on Transaction Fees until a 5 Billion Supply is reached.Impose Hard Cap at that point.(CEX are encouraged to do so too)
  3. Payment apps using UST are exempt from Tax (ex.Chai) But normal transaction fees are done and burned
    4.Buyback mechanism with leftover Assets and burn (excluding the Luna in treasury)
  4. Create a Burn Portal for every 100K Luna Classic Burned a Luna Token is given

UST Restoration:

  1. Change UST algorithm to an overcollateralized one 4:1 LunaC:UST
  2. Projects like Anchor are advised to setup lockup periods with maximum 10% APY for 1yr etc and flexible savings 3-5% APY
  3. Projects are encouraged to use USDC/BUSD form wormhole until UST Peg is restored

If Viable in the community’s standard, it is encouraged to be shared and proposed officially to bring the community together to restore this project.

3 Likes

UST cannot be revived…

  1. Most important aspect of any Stablecoin is “Trust”… without trust bank run is imminent and if that happens even the worlds largest bank will not survive… Unfortunately, after what has happened trust is gone.

  2. Over collateralization using crypto is not an solution. Even if you collateralize by 10x there is no guarantee it will not fall by 90% especially during a bear market.