Terra is important. That’s why I just nearly spent my last dollar on LUNA

Hello, Lunatics!

At a moment when I am personally in dire financial distress, I just bought some LUNA.

It wasn’t much. A paltry handful. I am almost bled dry. But I had to buy some LUNA.

Then, I spent a few hours searching for more money that I can afford to risk on a binary “great opportunity, or goes to zero—either/or” basis: You are now under severe attack, and you may not survive. Then, I realized that moral support is just as important, and I should stop by your forum.

This isn’t about me. When you’re down like this, I want for you to know that a faraway stranger just did what I just did.

Why? Why is this so important to me? The short version:

I must state upfront, I disagree fundamentally with some aspects of Terra’s design. (For one thing, I am strongly anti-POS.) However, life is sometimes messy. I will not lose sight of the fact that you are doing something truly important that nobody else is doing.

Bitcoin opened a new world. I am a longtime Bitcoiner; I will always be a Bitcoiner. And as no less than Hal Finney observed as early as 2010, the Bitcoin world needs to be integrated with what Hal called “a secondary level of payment systems”. In my own opinion, one of several principal problems to be solved by those systems is the creation of a price-stable permissionless currency, partly or wholly backed by Bitcoin as a reserve currency.

That describes Luna/Terra in a nutshell. You are actually doing it with shipping code and a functioning network, not only thinking or talking about it; and thus far, you have been efficient in promoting it for widespread usage, unlike some obscure projects that would be more promising if they weren’t so… obscure. All else pales in comparison to the importance of that.

And this attack on you decisively confirms my instincts: Terra/Luna is important. If you are not being attacked on a grand scale, then you are not doing anything important—you are not doing anything that could make a real difference in the world. On the flipside, I will set this as a benchmark for myself: If I am ever attacked with the same resources as now being brought to bear against Terra, then I will declare my life a resounding success. It will have meant I did something truly important.

If you do not prevail—if your project now dies—then I will laugh about the money I just spent on LUNA, even though I am personally desperate for every dollar now. I will mourn your project. It stinks like carbon diselenide (pun intended), but… you know that you’re in critical condition now.

If you do prevail—I will probably want to get involved somehow, when I have cycles to spare.

As you face this challenge, remember that if you can survive this test of your peg, then smart people will have much more confidence in your peg going forward. As Nietzsche said, “From life’s school of war—what does not kill me, makes me stronger.”



I’m just like you.
If you can’t do anything, there’s a promise to stay with the one you love.
I choose to stay :relieved::relieved:

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With all this honest interest and strong community trying their best to rescue this, I can’t see the project just disappear (dispite of what my eyes are seeing). I guess I’ll just be another sir drawning as a gentleman with the titanic.

Thats actually the point - I feel like Luna is currently at a price point where doge was 2 years ago. Of course doge was hyped up with no “actual” real world uses but Luna is actually an essential part of the terra network and for Me, the network that has survived this long under such a massive attack, sell off and FUD, One must look at the future prospects.

I think you should first save LUNA, which will give more confidence. After you recover, you could focus on UST.
Please, increase the LUNA price… I lost much money…


The markets are bad everywhere… no one is winning anywhere on anything. So maybe we then stay put and ride it until it dies… that either be the downtrend or the assets we hold.

My general thanks for the kind words.

Under extreme personal pressure, on the brink of wipeout, I bought a few more LUNA—and set aside some shreds of money to get more if it dips under $1 again, as I missed earlier.

I am not a trader. Although I know I will and should be rewarded for this if Terra recovers, my primary motive is not speculation on the price: I cannot afford that right now. No matter what the potential gain, I cannot properly afford to invest even one dollar now—not even one penny.

I should explain why I deem this so important.

This is not about whether Terra is perfect (I don’t think so), or whether you’re a fan of Do Kwon’s Tweets (I personally am not), or even about Terra at all. This is much bigger than that.

Terra stepped up and did the work to create the first popular, mass-market algorithmic stablecoin. That is not only technical work: Promotion is an indivisible part of the value of the system. The nature of money is that network effects dominate many other factors. In the abstract, a moderately inferior currency with superior network effects is, overall, strictly superior to a hypothetical competitor with a better technical design, but negligible adoption.

Nobody has achieved that before. There have been many algorithmic stablecoins—and I must emphasize, the history of the past decade is littered with the corpses of failed pegs. None reached the mass market. Therefore, none had any lasting effects beyond their own ecosystems—which were negligible in the big-picture “do you want to change the world?” evaluation.

Lasting effects can be for better or for worse.

Terra was the first even to begin to attain what marketing folks call “mindshare”, on a mass scale. That places them in a unique historical position.

If Terra succeeds—which means, at this moment, if they can restore confidence in their peg—then that will set the precedent. Algorithmic stablecoins will gain mass acceptance. Naturally, in that scenario, Terra will dominate the algorithmic stablecoin market—as well they will deserve, for this achievement.

If Terra now dies, there may not be another chance. The whole concept may be irreparably tainted in the public mind—and I think there is active propaganda for this right now, attacking Terra as a pretext to persuade people that trustless, permissionless, decentralized stablecoins can never, ever work—that we need to turn to Circle/USDC—that we need regulators to step in and protect the public against these nasty, evil algorithmics—the next step is CBDCs. Thus, regardless of its technical merits, a new project may be standing in its grave before it is even conceived.

Worse: This is a collateral propaganda attack on the concept of using Bitcoin as a reserve currency. People who don’t understand Bitcoin’s economics are already using Terra as an excuse for ill-considered, unjustifiable claims that Bitcoin doesn’t work for this purpose.

I said earlier, I’m a Bitcoiner. I have a friend who is an ultra-maximalist, who thinks that this is not about Terra at all: It is only an attack on the concept of using Bitcoin as a reserve currency, with Terra as a thin pretext. I won’t go that far, but I think it is certainly a big factor. And as I said at the beginning here: This is much bigger than Terra, in and of itself.

Ultimately, whoever is trying to crush Terra is attacking the whole concept of trustless, permissionless cryptocurrency. I am not spinning a conspiracy theory: I am pointing to the actual real-world effect. Loss of confidence in Terra is already being used by media pundits and government officials as a pretext to attack that concept: Not only the algorithmic stablecoin concept, but the concept of “crypto” altogether. And if Terra dies, Terra’s death will be used, abused, and exploited to establish a popular meme that “trustless, permissionless, decentralized currency is too dangerous. We need CBDCs!”

If I may now address the Terra people: You attained a big achievement. With that achievement comes an awesome responsibility. The historical weight of a pivotal moment in the development of money now rests on your shoulders.

My economically negligible LUNA purchases are tantamount to spitting into the ocean, insofar as the market is concerned; and at a moment when I am almost bankrupt myself, I can’t afford to buy enough to be really meaningful to me, even if LUNA does 50x tomorrow. I am doing it as my skin-in-the-game endorsement of the following things, in this order:

  1. The abstract concept of trustless, permissionless, decentralized, price-stable currency.

  2. Bitcoin as a reserve currency: A decentralized, trustless, permissionless, politically neutral global reserve currency, which savvy individuals can access directly. That seems to have been Hal’s view of Bitcoin; and after my years of pushing for adoption of Bitcoin as money, I recognize that Hal was really right. Bitcoin is an excellent reserve and settlement currency, and it’s a great investment for people who want to hold long-term savings in sound money; but price stability is needed for mass-usage in everyday transactions. Hal described how to fill that gap. Terra’s success would fill that gap for good.

  3. Terra. Although I seem a bit critical of Terra, I recognize their achievements; and I want them to succeed. They have an interesting technical design. They have previously survived some scenarios that killed prior attempts at an algorithmic stablecoin. If they can fix on a long-term basis what recently broke (and big Bitcoin reserves to backstop the LUNA algorithm will help much with this), then they will justly deserve recognition as the people who first solved the price-stability problem for trustless, permissionless, decentralized currency.

Dear readers of this post: If you think that these things make the world a better place, then you will understand why I am on the brink of literally throwing my last dollar into a currency that is currently in a death-spiral. I am not recommending that others follow me in that. It is now an extremely high-risk investment—and I recognize that any investment in LUNA is now a double-edged sword; if it does not recover, then essentially, dollars now spent on LUNA will become a donation to the people who are attacking it.

Indeed, at this juncture, I think it’s much more important to explain to people why this is important—to answer the mushrooming propaganda attacks on all of the above-listed things. Please think of the big picture, the long term, and how this affects the future development of money. Tell people why it is important. Don’t pump LUNA. Explain to people how this is about much more than Terra/Luna—this is much bigger. All else follows naturally.


This is backwards and upside-down. Please think of the big picture, the long term—and Terra’s obligations.

If Terra cannot maintain its peg, then the proper price of LUNA is exactly zero. LUNA’s only value—its only reason for existence!—is as an algorithmic reserve currency that absorbs volatility from the peg.

Terra has an obligation to UST holders. That obligation must be fulfilled, and it is payable by LUNA holders.

If your LUNA is down when UST is off its peg, then Terra is working as designed—ironically, that’s what gives LUNA its actual value. On the flipside, Terra has no obligation to LUNA holders. The obligation is one-way: LUNA holders have an obligation to UST holders. And profits are one-way! UST holders have no significant profit upside from appreciation of their money. LUNA has upside potential; by design, UST has none.

LUNA takes away all of the profit and all of the losses from UST. You can’t have your cake and eat it, too.

Complaining about the LUNA price when UST obligations are outstanding is like a few less-thoughtful Bitcoiners I see complaining about Do Kwon dumping BTC to meet Terra obligations. A reserve currency must be able to sustain the need to meet obligations. Sound money must be able to sustain usage as—well, as money. “Money“ means that you can spend it whenever you need to.

FYI, I just lost a lot of money because of this big BTC dump. Unrecoverable realized losses, not paper losses as you seem to have with LUNA. This really hurts.

I do not blame Terra for this, because Bitcoin is functioning as designed. I think that Bitcoin is an excellent reserve currency: It can absorb Terra’s price shocks. If I lost money, it is my own foolish fault for having put myself in a position where a little dip could hurt me. Not Terra’s fault.

Terra used Bitcoin as sound money that can be spent to meet outstanding obligations at any time, on demand. As a Bitcoiner, I am pleased to see that! It means that my BTC has value—real value—fundamental value. It is not a game of empty price speculation, which is the definition of a Ponzi. It is as good as gold—which would also crash for a bit, if someone flooded the market with that much of the supply all at once.

If you want to give LUNA some actual value (as I also want, especially now that I have some), please take the same attitude towards LUNA.


So well said! Thank you for that message of hope.

Check it out then. This may save the LUNA if done right

They don’t have any CBDCs yet. If there was an attack, it was someone trying to make a profit at the expense of people who had believed you can earn 20% risk free.