‘400M (40%)** to UST holders pro-rata at the time of the new network upgrade. UST holders need to be made whole as much as possible’
These need to be the UST holders who held the UST on Anchor before Terra blockchain was halted for the first time on 5/12/2022.
The easiest way to implement this is to get a snapshot of all UST accounts as of yesterday, 5/12/2022, before the first halt of the Terra blockchain, and distribute pro-rata by the amount of UST held in these accounts at the time.
UST is a STABLE COIN and no one bought it to risk losing their principle.
How UST holders are made whole speaks volume of Terra’s integrity and credibility, and is critical to build trust and good will going forward.
Addendum: I was not aware of this proposal before writing the above comment. To me this is easy to implement and makes a lot of sense because UST is a STABLE COIN to start with and UST depositors should be made whole to your best effort – [Proposal] Tiered repayment: airdrop USDC/USDT to small UST holders on Terra - Governance & Proposals - Terra Research Forum