Our first priority is still how to save the network not about distributions. Forget about this saving thing because most people just mean give me more than they deserve beyond the current market cap. No can’t do this. The actual worth is:
To be extremely fair , as per Terra’s contract, the network’s total value is $13B USTs + $2.1B LUNAs which means LUNA owners own 13.9% of the remaining assets. If we can find out the cost basis of $13B USTs for example to shave down $5B in debt obligations (assuming UST holders agree to this), then $13B - $5B + $2.1B has LUNA owners owning 20.8% of the remaining assets. If you’re trying to play magic numbers to wipe out all UST holders then no thank you.
What we need to do is work out a way to increase LUNA’s value and it’s not about saving one or the other. By stopping the total value from dropping would we get back whole.
Let’s look at options to help the existing LUNA holders at the current market cap to grow value. This is the only way. For example add some 0.1% network tax paid in LUNA or UST equivalent which will both be used to burn LUNAs. Allow LUNA to rapidly reduce in volume. We need to do at least this. Part of the tax paid should go into an insurance fund in the reserve. This insurance is to help us grow our USDC or equivalent reserves so that it may grow to the UST size one day. Any size beyond the debt obligations can be decided to buy and burn LUNAs for more money or put into an interest bearing account to help accelerate burning more LUNAs over time.
Forget about trying to screw one side or the other side. It won’t work. Make the network stronger by fixing the core issues first. That’s what we want to see from both LUNA and UST side because once we resume on Terra v2 without robustness added, know that the network is in an extremely fragile state where any drop of TVL instantly drops the value of LUNA and potentially unwinds all the way down to no more borrowers which is our current case. The collateral market was huge at the time of unwind. The best bet in the future is actually hold some real reserves. We may even require USDs to be put into a TerraBank to acquire USTs.