On the UST side, that is the crux of the matter. As a current LUNA holder who has sometimes previously held personal savings in UST, I absolutely agree that UST holders are the top priority here.
Please think of this in terms of bankruptcy. Terra is an insolvent debtor. UST holders are the first creditors in line for any value that can be recovered. The obligation to them overrides all other obligations here. The best means of fulfilling that obligation is open to some debate, but the obligation itself is absolute; anyone who wants to renege on it is openly advocating that UST holders be scammed.
However, that is not the sole obligation at issue here. @dokwon and TFL also issued a volatile currency, the LUNA token. They offered this as a fungible token: Each unit of LUNA was offered as having a value equal to, and indistinguishable from, each and every other unit of LUNA.
Now, they are seeking retroactively to rewrite the rules. They want to reallocate value away from good-faith purchasers for consideration, who spent good money buying LUNA after the crash.
Those purchasers took a huge risk on Terra’s future. They took money that was perfectly safe, and threw it into a dying network. In doing so, they reasonably relied on the offer of a fungible token indistinguishable from other units of the same token. (Disclosure: I am in that position—and so are some of my friends, whom I roused to action with speeches exhorting the need to save the Terra network.)
What is your analysis of the proposal that these purchasers be treated as “marginal” (in @dokwon’s words at the top of this thread), and arbitrarily assigned much lesser proportions of a new token than those who bought LUNA before the crash?
Note that pre-crash purchasers knew or should have known that their LUNA could be diluted. That was advertised up-front; indeed, it is the core principle of Terra’s design. Pre-crash purchasers got what they paid for. Post-crash purchasers bought LUNA on the same terms. But anyone who bought before late yesterday had no notice whatsoever that their LUNA tokens could be arbitrarily revalued, differently than other LUNA tokens.
Exactly and when Do and his team isn’t so serious or concerned with it just so means that all were planned and they scammed. I don’t understand being such irresponsible also such silence. It’s just not like being silent will be any outcome from them. They are just wasting time. Many things could have been done if there was other team with honesty and sincerity and didn’t had just wasted time. Just like CZ said he through Terra team was coming up with a plan like how axie infinity did. I don’t know even after such revelations from CZ we left to believe Terra Team or Do Kwon to listen us. Do Kwon had all the authority to handle this crisis but he went silent and just made phone calls and maybe even doing such now.
LFG could silently wait for UST market price low enough (e.g, 0.07 USD), then buy and burn all of those UST that want to exit. If 70% of total UST supply is on the exit, then about $500 millions is needed to bring UST back to peg. At this point, we could push UST over-peg to burn LUNA, which reverses the hyperinflation process.
I infer this means that for token holders,current holdings of LUNA would get divided by approx 7 000 (to reduce supply from approx 7 trillion to 1 billion)?
Why not raise funds+use existing reserves to buy back the LUNA tokens from the community at 0.5 USD flat and burn them till the circulating supply stabilizes?
Too many different ideas, The only sensible thing is to give the team time, my only advice is that the team has to deal with thick people like CZ and others in the industry, obviously who need to overcome the shock and make the final decision. … They definitely have a super ecosystem and I believe we can be reborn.
Some funding needs to be raised to save the project. You cant just say lets fork it and end of story, why should the token holders have the assets divided by 7 000?
The team should buy the tokens back and burn them.