How does TerraLuna recover?
TLDR. Ultimately, you need to burn UST and LUNA that isn’t in an individual’s wallet, an exchange’s wallet, or is currently being staked. Refund UST and LUNA to staking protocols that went missing and any that disappeared while in transit during the sudden network shutdown (TXID for proof). Then whales would have to buy UST until it reaches $1 or wait for the price of BTC (collateral) to rise. Buy UST. LUNA raises in price whenever UST values over $1. Use USD (Best), USDC (Circle), and or BUSD (Paxos) as collateral to help avoid this in the future.
(TerraLuna is a balance and the Terra side tipped too low)
TerraLuna is designed for selling LUNA in large (%) amounts, not USTerra in large (%) amounts.
Selling drops the price.
If you sell very high amounts (10%, 20%, 50%, !?%) of the TOTAL supply of UST, the price drops below $1 naturally.
But LUNA is designed to sustain the $1peg!
- Selling UST in large amounts (%) collapses the $1 peg everytime IF and WHEN the value of LUNA cannot compensate for it, especially if UST isn’t backed by USD exclusively.
- Selling LUNA in large amounts (%) also lowers the price of LUNA simultaneously.
- If UST drops, LUNA drops.
- A seller sells 20% of the total supply of UST.
- LUNA has to mint that value to help UST by being burned or sold.
But from where?
Either 1, 2, and or 3.
LUNA is converted (sold or burned) to UST quickly to replenish the lost 20% of UST
(% of LUNA being sold or burned = 20% of total supply of UST)
(You would need extra LUNA available at all times for this kind of event. A special reservoir for compensation events)
(During the compensation of the lost 20% UST, the price of LUNA will drop significantly because you have to buy 20% of the total supply of UST using LUNA)
Add Outside Capital. Buy UST.
(+USD = to 20% total supply of UST)
Wait for BTC to raise in price to a value (greater than or equal to) >=20% supply of UST.
Basically bro or someone else sold a very high percentage of UST. Some say Kwon made a UST/BTC purchase. At the moment of sale the price of UST and Bitcoin fell simultaneously.
-Trading concrete for sand.
-Selling your shares in the company.
-Gambling that BTC would go UP and maintain the peg!
So sell the BTC!
Either bro is (running with all the BTC) or is (waiting until the price of BTC rises) and (replenishes the UST) and pockets the difference.
Any good news?
Yeah, if this kid does the TLDR and doesn’t run.
Do Kwon thinks you’re all Noobs.
TerraLuna is deflationary by design (when the burn protocols are active and automated sufficiently).
TerraLuna by design inflates and deflates to uphold and maintain value.
- TerraLuna inflates to provide units of value.
- TL deflates to maintain and increase value.
- TL regains it’s peg when UST is bought by whales in high amounts (%) and excess suppy of TL is burned.
- TL fixes inflation by burning excess coins from circulation.
- TL being backed by BTC reinstates the $1peg when the price rises.
- LUNA scryrockets because anytime the value of T is over $1, the value of LUNA increases accordingly.
- Small amounts of excess TL is burned by default to increase rarity and value respectively.
- TerraLuna is a versatile value accumulation balancing acqusition machine. 20% interest is easy if people consistently buy LUNA when the price of UST is $1.
If the world economy is $90 Trillion, for any crypto to be a world currency, it would need a volume of units equal to $90 Trillion presently and be able to grow consistently in the future.
Since TerraLuna isn’t truly decentralized (please), burn rate and consensus can be changed to exact specifications. The 130 validators agree to a burn protocol and implement it and TerraLuna is on it’s way to being the world currency. TerraLuna, expands and contracts. The depegging event was a test and a display. Surely, tests were ran prior on testnets but it’s the sentiment towards TL that needs changing. How does one drive people to use TL as their daily means for bread. Allocation. If individuals have vested interest in TL they are more likely to support it. If it makes them money, it’s eternal.
But Market Cap! How much USD exists? $1 is still $1 though.
How do I earn trust if I’m Do Kwon and TerraLuna?
- DON’T RUN.
- Read and Implement the TLDR. BURN THE EXCESS TOKENS. Make USD collateral.
- Remove the “phone is rooted” limit from the android app. Obviously you don’t care about anyone’s security or well being.
- It’s basic math people arn’t as stupid as you think. 1+1=2, your trying to convince people it’s 12, get your mind together.
- People only want a token burn and will accept nothing else.