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.