Terra Revival Plan 3.0

We can break it down into two parts:

Save UST

Idea 1:

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

  1. Paxos: They not only have their own stable coin $USDP (USDP - Paxos) but also backs Binance’s stable coin BUSD (Binance USD (BUSD) - Paxos)

  2. Tether: https://tether.to/en/

  3. USDC: USD Coin (USDC) | Digital dollars for global business

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.

Idea2:

Create a new token which will be fully collateralize and can be minted 1:1 for UST

Save LUNA

Idea 1:

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.

Idea2:

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.

My opinion

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

cc: @dokwon @dokwon.terra

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Terra is decentralised money. Using USD. Here makes it centralised isn’t it? I understand that in a desperate situation. What comes after, if the peg is restored? They will have to remove USDC too.

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At this point, terra is no where near any kind of money, centralized or decentralized, I don’t think it was decentralized even before, if someone (LFG) has to come and defend the peg, that’s not decentralized, they failed in both criterias tbh.

They failed to protect it from centralized point of view (LFG failed)
They failed to protect it from decentralized point of view (Their minting machine was a total flop)

They took bad traits of both

BURN LUNA BURN LUNA BURN LUNA, BURN LUNA baby BURN!

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LFG could silently wait for UST market price low enough (e.g, 0.07 USD), then buy and burn all of those UST that want to exit. If 70% of total UST supply is on the exit, then about $500 millions is needed to bring UST back to peg. At this point, we could push UST over-peg to burn LUNA, which reverses the hyperinflation process.

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Burn luna and/or ust. The algorithm and the protocol can be improved without creating a new one from scratch or building a fork or handing “10k:1”. Now we have data and proof of what TERRA can and cannot handle. Recovering is the best thing for its reputation.

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You’re close. I agree UST is savable and the easier of the 2. It MUST be saved. I also agree with not using LUNA as you said.

I disagree with You’re suggestion however after that. Luna is savable and using UST is the best way to do it.

We can repeg UST and easily with the help of the Community. This needs to happen 1ST.

Exchange Luna for UST. $1 for $1 at current rates. (Incentive is a potential 5x gain on UST once its brought back to $1).

Difference is DO NOT burn the Luna. Sell it back on the open markets, then take the proceeds and buy BTC/ETH etc as well as some stablecoins. Alternativly you can save 10 percent to either back up or burn.

With a market recovery what we buy now will (in theory at least) double in value. But at least increase from current rates (hopefully).

Over fund it as a safe guard so that there is always an excess fund.

Then monitize it’s assets.

Once repegged, continue this process slowley releasing new batches so as not to dilute UST, and potentially go lower than value. Burning 10 percent, Holding 10 percent, and reselling 80. Also the profits from assets can be used to purchase LUNA to burn.

Chances are many LUNA holders have bought after the drop so as to substantially lower the cost per coin. I literally need $0.0046 per LUNA to get 100 percent back. So we dont really need a full recovery, even a fraction will make many whole again.

valuable proposal, +vote … i made a similar proposal for a token if you want to read … same wavelength and vision

$whaleLUNA

hopefully this is what they have “silently” been doing the last days … if TFL or LFG are now able to burn a bunch of their tokens at the cost of a small portion of the reserves this would undo a large amount of the hyperinflation … reinstate the peg and implement some of the proposals to reinstate faith in the future … and eventually $LUNA would also catch up again … allowing also perhaps for a new generation of wealth that hopefully will stick around to solidify this platform the way it needs to be done.

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