Terra Ecosystem Revival Plan

Just because individual token price is cheap, doesn’t mean there total was low, many probably put more in then you ever did fyi

1 Like

Nothing is FREE for some it is life-saving…

I like the team’s commitment towards this goal “UST holders needs to be made whole as much as possible”. However, if this is not possible with your proposal, I would like to suggest a few adjustments to your proposal.

Back to Basics:

First of all, LUNA holders and UST holders have different objectives: - unlike LUNA holders, folks who bought UST wanted stability, not massive gain, and they were not prepared to lose their capital. Hence, the proposal is not ideal as it will turn UST holders to chase for high return (to cover the loss) assuming the new LUNA can revive and become very valuable again. It will also be harder for LUNA holder to recover their losses now as UST holders will dilute new LUNA’s value.

Adjustments:

Hence the adjustment below:

  1. Split whatever left in LFG + whatever the core team made in the past (this is of course goodwill basis) into 2 parts. One part to convert to USDC, the other part can be in any form (BTC or the likes) to support the new ecosystem.

  2. Instead of minting new LUNA version 2 coins, burn the current LUNA in treasuries, I think the circulating LUNA can be reduced to less than 500 Billion (treasuries should have more than 6 trillions LUNA which can be burnt)

  3. To replace UST, mint another new semi-stable coins (eg. USDCT) and distribute to UST holder 1:1. This new USDCT coin will be backed by the USDC from step 1. Assuming there are still outstanding of 11B UST, and 2.2B USDC from step 1, then each USDCT has a minimum value of $0.2. On top of that, the 40% of the LUNA coins (post-burnt) can be added to this USDCT contract (20% reserved for converting to USDC in the future and 20% reserved for burnin when this conversion happens). This will add a variable component to USDCT such that it may eventually recover to $1.00. This contract can be design in a way that it will never be more than $1.00. So the formula below:

        USDCT = min($1.00 , $0.20+Var) where the Var derives from new LUNA value
    

The mechanism of burning LUNA in the USDCT contract, unlocking LUNA and convert to USDC when value of Var is close to $0.8 (or whenever holders choose to do so), and burning the USDCT after that will keep the value of LUNA, and Var unchanged before and after that operation.

  1. This way the UST holders get some guaranteed compensation, with the hope of being made whole (need time though). LUNA holders and Terra’s believers/supporters/developers can see new LUNA come back strong without being diluted by UST holders (as only the first $0.8 of the new LUNA value is diluted).

  2. There will be no minting of USDCT after genesis. That means 1.1B of USDCT. very importantly, LUNA’s value no longer depends on USDCT, but rather it depends on the utility, and all the great dApps in the new ecosystem developed by the brightest minds in the developers community.

  3. When the value derived from the variable component is approaching $0.8, some LUNA in the USDCT contract will be unlocked and converted to USDC, and equal amount of LUNA in the contract will be burnt, and some USDCT will be burnt such that the value of the USDCT, LUNA will be unchanged before and after this conversion. Some basic calculations:

LUNA price USDCT price USDCT burnt, with proportional collateralized LUNA unlocked, 50% converted to USDC and 50% burnt
$0.01 $0.20 no
$0.02 $0.20 no
$0.04 $0.21 no
$0.08 $0.22 no
$0.16 $0.23 no
$0.32 $0.26 no
$0.64 $0.33 no
$1.28 $0.46 no
$2.56 $0.71 no
$4.00 $1.00 started before LUNA’s price approaching 4.00
$5.00 N/A all would have been burnt
$10.00 N/A all would have been burnt
$20.00 N/A all would have been burnt
$40.00 N/A all would have been burnt
$80.00 N/A all would have been burnt

all USDCT will be burnt and cease to exists when LUNA price is more than $4.

TL;DR

To summarize, this is some adjustments to original proposal to be more aligned it with the two groups of holders’ investments objectives. Also, minting new LUNA V2 based on snapshot will not work as it is not fair, and not how blockchain should work. Instead, like what CZ suggested, burning the treasuries to reduce the excess supply should be the right way forward. Some work need to be done to come up with the mechanism to give UST holders’ hope to be made whole. I’m just citing an example, with so many brilliant people in the team, I think something better can be developed.
Lastly, stay strong everyone.

1 Like

A BUY and BURN poilcy to reduce the excess LUNA in circulation is the way to go to restore Trust in the Terra Ecosystem.
A percentage of the validation fee for every future transaction can be dedicated to the BUY and BURN policy.
All other approaches: haircut, reverting to a previous snapshot, weird reward and punishment percentages, etc. will simply destroy Trust in the whole Terra Ecosystem.
GROW UP and TAKE RESPONSIBILITY for your financial choices.

4 Likes

Your $LUNA is not more valuable than my $LUNA just because you might have bought higher

The same goes with #BITCOIN, the people who bought $BTC at $60,000 are not whining because people are now buying $BTC at $29,000 or even still at $3,000 during covid time

Drop your nonsense seriously, if you want to buy cheap now go ahead and do so, I just bought Bitcoin at $29,000 imagine if the poeple who bought at $60,000 started whining and decided to do a ROLLBACK to the November 2021 snapshot to restore the value to $60,000

It is NONSENSE

Instead of this the team should work on the following

  1. USE BTC Reserves to buy back $LUNA
  2. BURN $LUNA TOKENS
  3. Restore the value of $LUNA which will restore confidence

If you FORK and ROLLBACK you will essentially kill the chain and $LUNA will be DELISTED on ALL exchanges, no one will list the new token, NO ONE

If let’s say is a fork… why the HELL are exchanges still trading LUNA ? Shouldn’t the team ask exchanges to stop all trades as all NEW buyers that bought before the halt are not eligible for luna v2 token ? This makes all NEW buyers the stupidest suckers that bought into a coin that are worthless from the start. That will be a FRAUD!!

So lets stop this madness

WORK ON IMPROVING the current chain @dokwon
Fix your mistakes, restore confidence there is no other way around this, there are no shortcuts

7 Likes

And I agree with Lucasvdws

1h

Sorry to see LUNA holder’s loss, but as many people mentioned, LUNA is TERRA’s equity, LUNA holder is TERRA’s shareholder, but UST is TERRA’s debt, in law if TERRA go bankrupt, they need to clean the debt first and share the remain (if any) to shareholders…

Spot on same with BTC when it COVID-crashed the price as $3000 people bought and sold at $60000 what is the difference. Love your comment.

1 Like

how should this burn work while these prices go ?

its impossible to make a significant burn.

Hey man, people need some kind of compensation!!! Otherwise the Terra Fundation will go to jail!!!

Compensation? Who is going to provide that? People like me you wish to steal from that provided sellers with liquidity? That’s not very fair is it now? We bought an asset that was sold. We’re entitled to that asset.

2 Likes

Then, the Terra Fundation will be attacked by pre-crash holders, also, Terra is about empathy and grow together and not take the majority of profit!!!

The opposite is true. Check by yourself.
With a very low LUNA price, lot of LUNA coins can be burned for let’s say just 100 fiat USD.

GROW UP and TAKE RESPONSIBILITY for your financial choices.

Empathy and feel good, holding hands… hugging trees, whilst you rob people that provided liquidity. Does it make you feel better about being a thief if you think of it like that?

No one needs compensation, the UST needs repegging because it was sold as a stable coin but LUNA has no requirement to ever go back up, it is by design that it dilutes as UST depegs, LUNA should still be minting to drive UST repeg

“As Luna is minted to match Terra offers, volatility is moved from Terra price to Luna supply. If
unmitigated, this Luna dilution presents a problem for miners; their Luna stakes are worth a smaller
portion of total available mining power post-contraction.” ← No one read the white paper did they before investing.

1 Like

That is true!!!

Which is it?.. Terra Foundation precrash holders are vengeful, or they are empathetic? Because I am struggling to reconcile your blatant contradiction.

1 Like

Is there any calculation or data of the addresses and UST quantities before the depeg? So people can calculate the cap for the refund? Or at least what is the block that we are looking at?

What you will do if you loose a lot of money (or all your money) and you have the opportunity to regain a part of that??.. You will probably sue the person who do it to you!!! (PS: I am not a pre-crash holder)

Where’s the emergency plan when something like this happen? Does any crypto have an emergency plan? What is bit coin emergency plan?

This ^ lets do it