The proposal suggested by Do Kwon and Terra Labs right now can be gamed. If I know that this is the plan, then I will spend a few dollars right now to buy Luna to get millions of it. Even if I only get a fraction of it back with the new Luna, then those few dollars I spend now would be worth more than the amount that I had spent prior to the attack.
But before thinking about how to distribute new Luna, think more about how to make the new chain resilient to any attacks or death spirals like the one we saw over the last few days.
Yes simple.
Go 1:1 token, price currently trading,
UST swap to new token at trading price,
delete UST after full swap.
Burn excess new token
Stop talking about stupid compensation and blah blah blah. It will only make this token bad!
I think the distribution should be based on losses from the time of de-pegging until being delisted. This may be more complicated though fairer, as I see it. UST was suppose to be a stable coin and will be again so not much loss is there compared to LUNA holders who literally lost everything. If some of the brightest minds work on the project they should be able to do the work to base distribution based on actual losses and nothing else, in my opinion. Not token losses though value of what they bought for or were worth at the time of de-pegging onwards. If some one threw in at 10 dollars to keep people from committing suicide they should be comped more then some one buying at .ooo5 usd per LUNA and did not get any actual loss. The stability of UST was due to LUNA investors, was it not?
Can you create a new token and redistribute the existing value of the community and ecosystem fairly? No. This creates numerous problems. Who gets what? Where? And when? What about stakers and holders and traders…? If a validator keeps running the existing token you’ll also fork the community and value like ETC or BCH.
The tokens are already distributed exactly where they should be, down to the last decimal place, based on the decisions that all the users made in these difficult circumstances during this crises. Yes the algorithm is blown, the value is decimated and you have a gazillion tokens, but you can’t create value by reminting another one to cover up this one. In fact, you’ll dilute both and trust further.
You already have value. Like you said, you have an active community, brand recognition and developers building projects. Why not keep your token with it’s sub penny value. Like it or not, that’s the market value of it right now. Cap the limit and just rebuild. Create new Luna projects that add value. Don’t fake it. Then, as the value increases, buy out the UST holders to make them whole. Play the cards you have. Don’t try a shell game. You have everything you need to recreate value, you just have to face it head on and grind your way out. This seems like the fastest way to me.
The highest priority, @dokwon , is to restore trust by making whole those who had a reasonable expectation, fueled by your marketing and your promises, of safety and stability.
Any attempts to reconstitute the network, or a different iteration of the network, will just end up fugazi pixie dust and be doomed to fail unless you reimburse loyal UST holders who you ASSURED would be OK.
No one will trust you until that happens. And no further building will be possible until people trust you. Your reputation will be irredeemable and you will join the ranks of Bernie Madoff and Elizabeth Holmes.
This is the worst of all proposal, essentially reward your vc friends and big bag holders who most likely dumped!!! you should be rewarding the current holders/smaller investors whose livelihood are affected; i.e small holders. People with less than 100k in the wallets or on exchanges.
I participated buying the fall. Buy in Osmosis and in binance.
At least for those of us who buy from Osmosis, I could try to reward it since it has the chain’s information.
For ust, if anyone holding today had bought before the first depeg (10th of may i think), they should be considered.
For Luna, you should fix it at the either $1 or the price binance delisted it (0.005, i think). That includes all types of Luna and ust in any system except in copy farmer systems like donkey finance.
I’d say a fair return on UST would be around 80%, for long term holders, would possibly wipe out the Apr earned in Anchor, your mistake as the 1 dollar peg was promised, if it puts you in the poor house, tough, 1 person, instead of thousands. Play fair eh
As it should be. How can people that have already been compensated + literally caused this disaster actually have the audacity to think they should be compensated (again)? All they’ll do is exit again and cause another disaster.
Luna was, always has been, and always will be, the speculative, volatility absorbing part of this ecosystem. UST was always meant to be the stable, no volatility asset that provided the confidence and trust in the Terra ecosystem.
ANY proposal that aims to make the speculators (Luna holders) whole and short change the UST holders (and people who tried to help the peg remain) is a bad proposal, period. If you (Terra leadership) wants a fraction of a chance at a v2 reboot being successful, it 100% hinges on taking care of the UST holders first, period.
I have big bags in both, as many people did. I’m ok with my Luna going to zero, because I always knew that chance was there. I’m not ok with my stablecoin going to zero though.