when luna depend on UST won ?
I know it’s not intentional, but this comes off as a bait-and-switch to both UST holders and LUNA holders.
@dokwon, the only way for any currency to gain confidence is if buyers can expect to get what they paid for…
…and the only way for any new Terra project to gain confidence, is if the old Terra project ultimately kept its promises.
You say that you want to preserve the Terra ecosystem. How do you expect for it to gain people’s trust for new products, if it retroactively rewrote its obligations and its policies the first time around?
UST buyers paid for a promise of 1:1 on-demand redemption for dollars. They did not buy a share in Terra: If they had wanted that, they would have bought LUNA. Terra sold them each a promise of $1 per UST—no more, no less.
Perhaps they cannot be paid immediately because the Terra network is, in substantial effect, an insolvent debtor with liabilities exceeding assets. Perhaps. If so, that should be handled accordingly: There are customary and acceptable ways of working out a payment plan for an insolvent debtor to discharge its obligations as much as possible, as fast as possible.
LUNA buyers at all times paid for a fungible token equal to, and indistinguishable from, each and every other LUNA. And there is nothing unfair about the potential for high profits: To the contrary. Those who made an extremely high-risk investment by dumping money into a dying coin deserve to be rewarded commensurately to the risk. Those who did so as LTH are visionaries who made an all-or-nothing bet on Terra’s success, at the moment when it was reasonable to expect for LUNA to go to zero. They not “marginal buyers”. Indeed, some of them probably care about Terra’s stated mission much more than FOMO buyers, who paid much more when they wanted to get in on the big green candlesticks.
(Disclosure: I am one of those. So are some of my friends, whom I persuaded to throw money into LUNA on the way down. Although I am a relative newcomer, I do think I’m the type you probably want to keep here.)
For both UST holders and LUNA holders, it is unfair to switch them to something different than what they bought—all divvied up in a way that seems arbitrary.
A brief counter-proposal:
Make an unequivocal public declaration that Terra’s overriding priority is to make UST holders whole. As much as possible, as fast as possible, not stopping till it’s done. Work to calm fears that UST holders will be switched to something different than they paid for.
Draw up a payout and re-pegging plan, from the perspective of an insolvent debtor who earnestly wants to keep his promises.
Implement creative ways to incentivize the mass-burning of cheap LUNA, based on self-selection by STHs and LTHs. That problem may be more tractable than it seems, because much of the public is currently treating LUNA as toy money. Sure, many people scooped up LUNA for cheap; but most of them will treat it as, “easy come, easy go!”
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$200K in LUNA …gone
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Each one who purchases LUNA should obtain the same rights, because they have also made the same contribution. This is the spirit of the blockchain. If you think that the rights of some people are fraud, they need to be responsible.
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According to an article from the this week, LFG had 3.5 billion dollars in Bitcoin.
If this was used to defend the peg (presumably by buying depegged UST for < $1), we would expect LFG to have more than 3.5 billion in UST.
LFG claims to only have, at the end, around 1 billion in UST it was looking to burn.
Where is the other $2.5+ billion?
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Why can’t the ust be pulled back to $1? Where did all the money that was deposited with you go? Are you all swallowed?
I am a UST holder. Never sold a single UST while this whole debacle was unfolding, and still holding them now. We need to bring this to the courts immediately, before any kind of redistribution that does not prioritize debt-holders ends up happening. I live in the US and am reaching out to Singaporean lawyers. At this point, it is stupid to leave fighting over the scraps to speculators and various flavors of legitimate creditors. We need legal recourse.
If you want to collaborate, let me know.
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So would the compensation come from a distribution of a forked coin after an update, or 1:1 of USDC?
How does this apply to someone like me who held his luna on binance ? so i had 82 luna which i sold at like 40 bucks and having a loss of about 4k how much money would i reasonably see back from this. Or do i get 82 luna tokens worth a dollar each ?
With respect do kwon, TFL and LFG need to use their remaining reserves to buy back and burn the Luna which is currently diluting it’s value. I don’t think creating a new chain is the right way. There were many who trusted your last few tweets about support coming and continued to buy and support Luna even while the ship was going down. You need to repay that trust. Please buy back and burn the excess Luna. Don’t destroy the chain.
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Bro, to me your plan is not how to fix the problem, but to find a way to get away with the mistakes you made.
You made mistakes and you fix it, you earn respect from the community. Creating a new chain talking about how the tokens being distributed without solving the exisiting problems, you are as naive as I can think of you man.
These new tokens have no values if there isnt trust or respect from you and definitely there wont be community to support that.
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Pre-crash investors, our money is gone. The only way to get it back is to invest more money now and work to attract market capital. If theres opportunity to make money people will come in droves. Any existing chain capital should be used to buy and burn tokens. This will drive up the price, people will make fortunes, and more investors will pile in. This is the only way.
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The people bought luna before supply minting get rewarded or not. I mean the people bought at 5$, 1$ etc… the supply remained the same at that time. Its started minting from 700m to trillions after the luna price dropped down below 0.1$ . This price drop is because of panic sellers.do they come under 40% or 10%. Can anyone answer please!?
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A simple tweak might help: Slow down ust → luna per block to some very low absorbable amount (i.e. a max downward slope on ust conversion). The problem right now is there is scarce liquidity, try to match it. ust holders have to either patently wait for their ust to convert via luna into real usd or sell at the market to someone more patient. Some mechanism that considers liquidity for max. ust → luna per block would introduce an interesting variability (i.e some kind of avg. liquidity → if liquidity or traded volume is high more ust ->luna and vice versa) .
Furthermore there has to be some certainty with a luna token supply cap. New buyers have no orientation at what market cap they are investing into the ecosystem, therefore not buying. Noone has an idea about the 0 involved…
I think should refund UST 1:1, for LUNA to keep current trading because LUNA is a token and is not a stable coin. We all know the rule in the crypto space. After that, get rid off ust
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I’m holding UST on Binance, I transferred the money from anchor protocol on 10 May, what happens to my UST with this proposal?
What about those who bridged their Luna/UST to other chains such as Osmosis, Ethereum and Aurora?
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Please don’t forget about stLuna holders/contracts and vUST holders. We had a huge portion of our funds in these 2 tokens.
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What LUNA did the attacker have, when?
I note that the proposed plan may risk giving a ridiculously disproportionate amount of the new tokens to whatever party attacked the peg, at the expense of people who bought the new LUNA they were dumping.
I hypothesize that the attacking party probably had in its hands a terrifically huge quantity of LUNA at the moment of the “last $1 tick before the depeg”, which they subsequently sold off as they simultaneously crashed both the LUNA market and the UST market.
If so, they will be in the 40%—while good-faith purchasers who soaked up that flood of LUNA will be branded as “marginal”, and consigned to a negligible sliver of the 10%.
Please consider this as a topic for research and investigation. If my hunch holds true, the attacking party is probably laughing with glee over this proposal. What will they do to the new network?
The best way to reduce their potential for such an advantage is to treat each and every LUNA as equal and fungible. To break the peg, the attacker needed repeatedly to mint and sell oceans of LUNA—thus divesting themselves of that LUNA. The people who bought it were acting in good faith; they should be rewarded for that. In essence, they paid good money to take LUNA out of the attacker’s hands. (Disclosure, again: I am one of them.)
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Here is how you will get UST peg back and burn LUNA. Stake UST with reward. If you own UST at the peg then the amount you were going to throw at new project you give half the money to the holders at peg (as a drop). Then use the rest of supply to buy more UST above the $1 to burn more LUNA.