We can break it down into two parts:
We all can agree that $UST is more alive than LUNA and arguably more important. Let’s see how we can save $UST.
Since the minting machine is now stopped, $UST is just another stable coin on some blockchain, let’s not try to re-peg it via minting machine. Let’s collateralize it !
There are some very big stable coins, let’s reach out to them and see if anyone of them is willing to provide collateral for $UST
These companies are really big and if each of them agree to provide 3B of collateral, that would be 9B of collateral, current supply of $UST is around 11B, we can sell whatever $LUNA foundation holds in their reserves to match the 11B reserve in collateral for $UST.
This would change Terra from an algorithmic stable coin chain to fully collateralize stable coin chain.
Create a new token which will be fully collateralize and can be minted 1:1 for UST
I am not sure if this is possible but let’s see:
Let’s be honest LUNA in it’s current form is not useful at all, I suggest to redenom LUNA, ex: For every 10K $LUNA each address can claim 1$ LUNA_NEW
And since we are a cosmwasm chain, we can deploy a new crc20 to aridrop to folks based on a snapshot before the attack to compensate.
Let terra run as it is with UST as fully collateralize stable coin and keep the minting machine paused.
And we can launch a new chain and start fresh for $LUNA, we can take a snapshot on a block height before attack and make it the genesis balance of the new chain.
No stable coin on this chain or maybe we can think of migrating UST eventually to this chain but that’s a very long term plan.
I think saving $UST at least should be really easy - let’s save it while it is alive and make it fully collateralize.
Saving LUNA can be a bit tricky and community can throw more ideas