This idea is terrible. The only worse idea is this proposal. They are both bad. FatMan’s proposal effectively forfeits all funds in large wallets. A lot of users have their UST stored on exchanges which would be classified as “whales” even though the fund might belong to many thousands of users.
It also involves a snapshot, which again, is an inherently flawed idea. The only fair path forward is to restore the UST peg by buying up UST now whilst it’s cheap using the BTC fund. When the BTC fund can no longer purchase the remaining UST market cap, it should wait until bitcoin price increases before purchasing again.
Raise some funding from backers, say we are able to raise 1.5bln USD
Break this treasure into 3 buckets - UST backing, Luna Backing, and Never to be touched, say 500 mln each. Say 500 mln each
Stop minting Luna or UST for now
UST Plan
Set floor price at 70% of backing, so floor prices for UST assuming around 12 bln in circulation, will be about 3 cents. At that prices All UST can be bought back and ecosystem still have something left over for devs and backers.
Stake the 500 mln UST backing treasury to a diversified mix of lenders/swap platforms. Use the yield from this to buy back UST at market price. Very important to use only the yield as using the capital will push the floor down. Say APR is 3.65% (could be more), or 0.01% a day, use that to buy back.
Of the buy back burn 10%
Use 10% as guaranteed yield for those who want to lock and stake UST. Lock can be weekly. This will take supply of the market.
Put a sell order at 2x of the purchase price for 60%.If the sell order is hit, then add that money to the backing.
*Send 20% to investors. If UST recovers to 1USD investors will get huge returns. If not their capital is still safe
Everyday floor price will steadily increase, and steadily rising floor price will bring confidence back to UST.
Luna Plan
Now floor price is 70% of backing, so floor prices for Luna assuming around 6.5 tln in circulation, will be about 0.00005 cents. At that prices all Luna can be bought back and ecosystem still have something left over for devs and backers.
Stake the 500 mln Luna treasury to a diversified mix of lenders/swap platforms. Use the yield from this to buy back Luna at market price. Very important to use only the yield as using the capital will push the floor down. Say APR is 3.65% (could be more), or 0.01% a day, use that to buy back.
Of the buy back burn 10%
Distribute 30% to a snapshot of all holders before the attack on pro rated basis, weekly.
Put a sell order at 2x of the purchase price for 60%.If the sell order is hit, then add that money to the backing.
Everyday floor price will steadily increase, and steadily rising floor price will bring confidence back to UST.
Once Luna and UST system are back to stability and UST is between 0.9 and 1.1 USD then repeg can be explore based on community consensus
Is important to publish the floor price and treasure transactions weekly for confidence.
The current floor is way below trading prices, but the fact that there is a floor below will give confidence and as floor slowly and steadily rises, foundations can be rebuilt and investors can get their money back.
I’m from Romania, a few days ago I came to England to work until the market recovers, all my savings were in Tera Luna, I withdrew € 1000 so I could pay my rent for a month, I couldn’t find a job, I only have money to return to Romania, what do I do in this case, I have no solution. I trusted you, Do Kwon.
Top 27 addresses with more than 880 billions tokens, with 26 addresses with same exact 31.964613 Billion Luna tokens to the last decimal point each…not a coincidence.
These are all new token minted by Terra/Luna probably still owned by Terra/Luna that could be easily burned
you shouldn’t have put in what you couldn’t afford to lose, that is investment 101, so many people here are crying the same thing “i lost my life savings, i am going to lose the house, my wife will leave me” that is all on you guys for investing more than you can lose
A refund for those who lost holding UST is only ethical and crucial for the continuance of trust in the terra ecosystem. However, refunding those who lost from selling Luna is something that isn’t quite right. The price of UST was promised to equal 1 USD but the price of LUNA in line with it’s character as an asset could appreciate or depreciate in value at any time so anyone buying it knows this before buying. This is why I feel refunding luna holders who sold should not be on the agenda. Just restore the UST peg, compensate UST holders and burn LUNA to a desired amount. Old investors can reinvest if they want and if they really believe in the project, New investors are plenty coming in. The value won’t get to 100usd per 1 Luna over night. The coin will definitely need some time to heal and grow.
I am really pissed with people who is investing now, they are just stupidly posting all over the social media how they are turning 100$ to 2000$.
Some people here lost everything.
And I even saw people how they sold during the attacks and shorted the coins in future, they are laughing how they made 20x or more gain by shorting the coin instead of holding.
Whoever hold should be rewarded.
I don’t know what’s team plans, but people who is buying at 0.002 or lower and sold during the attacks should not be in part of luna!
They already made profit and making jokes all over.
And some are here also holding billions and millions token and hoping they would get 10%.
Seems Luna holders are very much prioritized here over UST, which is absurd. Oak’s proposal is much more sound.Would be more open to this if the end result didn’t include Kwon or LFG in any aspect, as they are clearly incompetent and undeserving of any trust.
Release a new public chain? Do you think all the applications and users in the current luna ecosystem will be willing to migrate to the new public chain? Why can’t you repurchase responsibly and then destroy it? Don’t you know that repurchase and destruction can really inspire people and retain ecological projects and users? Or are you reluctant to spend a penny, so you shamelessly fork a new public chain?
Calm down. Don’t hate people because they are able to spot a good market opportunity and take advantage of it to make profit. Probably took them years to develop that kind of instinct to know when to buy or short even when everyone else does the opposite. Also, the last I checked, LUNA is not a club in a tree house in your back yard where all of you practise secret hand shakes. LUNA is decentralised meaning anyone can be a part of LUNA so you don’t get to kick people out or let people in. You should be glad people are buying LUNA now… They aren’t buying the coin but they are buying the TEAM. They are willing to bet on the team to get the ecosystem to better days and it’s really because of them that LUNA is still hanging on even when most of the veteran holders sold off.
You obviously don’t understand how markets work and are criticizing the very people that are providing any value to UST or LUNA at all at the moment.
People that are buying in cheap right now are providing liquidity to the market. If they didn’t exist, your assets would be worth exactly $0 currently, because you would have no one to sell them to. I suggest you re-read my post again and again until you understand why this simple fact holds.
Yes, some people might be lucky now and make quick money whilst others lost everything. Their role however is essential in order for any asset to have value. This is how capitalism and free markets work. It is the most stable system of trade for a reason.
we all have to accept, its over,
its a free market, we all know about risks in crypto, so just accept your losses or wins, and move forward to new future goals
Come on, Enjoy in Silence… Really ? You can’t silence the joy someone feels just because a certain group of people are going through a rough patch. The sun won’t shine on the whole world simultaneously so enjoy it to the full when it shines on you. In the end it really is a free world. If anyone doesn’t like a post on social media then block or mute the person or switch off your phone rather than torment yourself if you are still yet to get to a place where you can be happy with them. You can only control what you do… it ends there.