The only way Terra/LUNA can survive is to bring UST back to peg or close to peg. If not, nobody will ever trust anything Terra/LUNA/UST again, including Do Kwon.
I think also with the proposal of a fork the Terra team and especially Do Kwon has lost all the trust with anyone who at least has some clue what investment, cryptocurrency and stable coins are.
LUNA is related to the Terra project and is a (risky) investment, an investment in a cryptocurrency project. So you could loose everything or almost everything.
UST is/was sold as a stablecoin and would need to follow the US dollar closely. As it is/was kind of an experiment people might expect some deviation, like 10% up or down, but not a collapse like the one that happened.
To me the only way forward is to find a way to bring UST back to peg and I presumed the Terra Team and Do Kwon were committed to do that. That is why I held on to my UST and why I bought some LUNA to support the project after the collapse.
And I thought we were going back to peg, as UST stabilized and I expected the team to fix the vulnerability and find ways to support a slow but sure UST going back to peg. I am pretty sure that once people see an upward trend in UST of even 1 or 2 cents a day, trust would be quickly restored and investors and speculators would help bring UST back to peg seeing the upward trend.
Creating a fork with different coins will just kill the project and kill all trust in any programmed stable coin for a long time. UST has become Terrra and I am very sorry for the LUNA investors, but i guess we can find ways to compensate people who lost a lot or all their money.
On the negative: if the team and Do Kwon continue on the path of fork and abandoning UST as a stable coin pegged to the dollar they would probably never recover from all the lawsuits and compensations requested. They would also not be sure of their lives, as I am pretty sure there would be a lot of angry people out there willing to kill them.
Would be a pretty good idea if possible through staking protocols like anchor. Instead of going down the fork route, switch from Earning on on your holdings a temporary command could be to switch to burning those coins from supply until stablization occurs and a reasonable supply of coins. I think this would really help UST and Luna in the long run!
The only way to save this project is through peg restitution.
Use all the lessons learned from this debacle (and issues faced by other stablecoins) to make UST even more resilient. Thatâs the only road to redemption. Bonus point: Luna will be saved as a byproduct.
It seems that the problem is complex. Here are some thoughts.
UST. It is imperative to refund these holders. 100% of their funds as soon as possible. While the stablecoin became unstable, the ability to refund these users and untarnish the past few days will be a true legacy of âdoing the right thing.â
This will take some forensic accounting to see what their true losses prior to the event and when they sold. But this can be done with time. Letâs figure out those numbers and work towards 100% repayment.
Terra Luna. Similar problem as UST. This was speculative and people understood the risks related to the changes in price could occur. Did anyone expect this - no way. But many held, held and bought back in, or sold for losses.
Since the trading continued the price drop let many new buyers into the token and amazingly low numbers. These additional tokens were bought using real currency and were bought mainly as speculation on a future price rise. But this is the nature of cryptocurrency.
So, how do we treat everyone here?
We have old holders and new holders.
Again, this will take some forensic accounting. But, we can setup some compensation for these pre event holders to help them as well. Letâs check their losses and see if we can compensate a percentage of their pre event back to them as well. Not sure on what percentage makes sense here.
Good will goes a long way. Unlike UST, this wasnât meant to be a stablecoin. We also have the amount of tokens and how to lower supply.
Next Steps:
While a fork is a reboot and will compensate a portion of the proceeds, it still shows a failure for UST.
The buy and sell tax on Luna seems to be the only way to make this happen and it will still take a long time. I am not clear on what numbers make sense for this.
But for an example letâs do 10% tax on salesâŚthis could be 5% UST holders repayment and 2.5% to Luna pre event and 2.5% burn.
Again, I donât know what numbers work best.
Hopefully you see what this will do.
It will get the UST holders paid back, get some long term Luna people compensated, and help spurn growth of the current token.
It will be work but will be worth it in the end both for your holders and your legacy.
People, thereâs a vesting period of 2 years!!! you wonât see your money ever again. This plan in designed to let Do Kwon off as easy as possible. Heâs going to create more fake money, backed by absolutely nothing, with absolutely no value, and lock you into it for 2 years. This will be his THIRD project he created that didnât work. Enough is enough.
There are better proposals than this heap of garbage. VOTE NO.
Theyâre not going to burn, letâs not be delusional. They will claim they used all the remaining reserves for the airdrop and to launch the new project. Nothing will be left to buyback. I doubt they will care enough to implement the burn tax also. Pretty sure they are going to let it d1e and we will get refunded with 1 or 2 dollars at best, because there have been too many buyers and there is too little money as they claim. No prison for Kwon, because luna classic will still be open after fork, nothing will happen to him, donât be delusional. 100k wasted to get refunded with 1 dollar.
