There’s been talk of forking to before the depeg including by Do Kwon himself. This goes against the principals of blockchain, doesn’t fix the root cause, and burns a lot of people. If this is going to be fixed at all, it should fix the root cause and try to make whole the people that lost their shirts. To fix it, their needs to be more and better collateral than LUNA. This attack was well known and documented and I suppose that’s why they started buying BTC, but they didn’t buy enough.
Burn all TFL + Community Tokens
This would remove 11% of all UST as stated in the official Twitter account: https://twitter.com/terra_money/status/1524654736678715392
There’s probably a lot more LUNA that could be burned from founders/TFL accounts. Not saying take every penny, but they should be willing to put up a big portion if they truly want to save it.
Purchase Plan with Make Whole + Burn + Collateralize
- Take new investment via another stablecoin, like USDC
- For each USDC invested, buy one UST on the open market and give to investor
- The remainder will be used for the following:
- 25% to buy LUNA and give to investor
- 25% to buy LUNA and burn it
- 25% to keep for collateral in USDC
- 25% to buy LUNA and keep for collateral
Some rough calculations and scenarios here: Terra Luna Turnaround - Google Sheets
Buy UST with BTC Holdings
No one knows where the $1.5B in BTC went, but surely there’s a lot left because it didn’t go towards buying UST to prop up the peg. This should be used to buy UST as it was meant to.
I’d say doing this after allowing people to buy the purchase plan would be better so that people can get cheap UST before it gets bought up with this BTC.
If it achieves the $1 peg after all of the above, keep the remainder of the BTC as collateral.
Ensure the community and ecosystem have more say and have more involvement going forward. Probably replace exec team.