The Gold Standard of Stability

Governance Voting Limitation Act

To enable Terra Classic to be a national voting platform for a possible world government (for and beyond the Terra Station) ~ each and all wallets (delegators & validators) should be limited to (1) governance vote and each and all wallets should be pegged to a real and verified identity to be allowed to vote. No ID pegged - no vote | only staking. To clarify - a unique identity would only be allowed one wallet, the same person would not have 50 wallets and 50 votes (for example).

Terra Classic indefinite Stability Tax & USTC Creation Limitation Act

Building civilizational, organizational, and individual wealth is the reason for work - it’s important our money retains its value {if it doesn’t increase}, is secure in our possession, our use of it is private {unless shared or hard-evidence of unethical behavior exists or to vote on governance), and it’s supply is capped to eliminate inflation that caused deflation (abides by the natural law of supply & demand).

The passing of a proposition that matches the philosophy that this post explains will result in the indefinite stability of the values of both LUNC & USTC by (1.) indefinitely taxing all LUNC transfers to offset newly created tokens (from staking) to maintain a 10,000,000,000 max supply of LUNC after the burning of the passed proposition 3568 is complete and by (2.) limiting the creation of new USTC (max supply of 10,000,000,000 USTC) by pegging it to the gross weight of the total supply of discovered physical gold.

Stable-coins that match the value of national fiat debt-based currencies are unstable because the supplies of those debt-based currencies are inflated by actions like usury and their values are then deflated by that inflation when met with a naturally limited demand/population of users (consistent instability).

Taxes on all transfers of LUNC that are equal to the collective amount of LUNC being created by staking or lending with interest are necessary for a true stable max supply of (10 billion) to be maintained. That maintenance, when met with a strong demand, preserves the value.

Taxing LUNC transfers also encourages people to hold LUNC tokens and hopefully stake them (PoS), vote on proposed adjustments to the system (governance limited to one vote from ID verified wallets only), and propose new governance ideas to vote on as they gain staking rewards.

To gain access to staking (increased holdings), people will demand LUNC tokens and that demand will incentivize the selling of them (profitable) and initiate that burning of tokens (during exchanges) to equally match the creation of tokens through that same staking process.

Not taxing USTC transactions and limiting the minting of new USTC encourages people to transact with USTC (promoting economic engagement) and it encourages saving USTC to preserve wealth with little risk! (People can still lend USTC - to the less fortunate - without charging interest (philanthropy).)

Staking USTC should be indefinitely banned.

As already mentioned, to supply a growing demand/population, pegging the USTC to the gross weight of the total amount of discovered gold using an oracle (about 244,000 metric tons so far ~ equaling 10,000,000,000 UTSC) will enable the creation of new USTC as gold weight is expanded by an expanding population that discovers more gold. {The ‘exact’ gross weight of gold would be oracle pegged to the 10,000,000,000 supplies of LUNC & USTC}. That natural inflation will release any tension caused by the growing demand (population).

The passing of this type of all encompassing ‘core’ proposition will limit the creation of new USTC’s (other than through the gold gross weight pegging method).

This type of all encompassing core design will also stabilize the supply (starting @ 10 billion after prop 3568 is completed) of LUNC indefinitely by continually taxing all transactions equally to the continuous newly minted supply based on active contracts and updating based on canceled or new contracts.

The War for the Blockchain: The People v. The Whales

The whales - not all whales - that only care about money and control will vote no for any proposition that guides our Terra ecosystem toward the ideology (true decentralization) that limits their control of that ecosystem ~ exposing them who caused our last collapse and likely profited off it…

A BIG part of the act of getting by those :whale2: is Us (delegators) actively voting in favor-of the two acts mentioned in the post (above) so validators can’t use our votes to maintain their power (those who want to have that power).

We are at a crossroads where we can go toward stability & wealth or just wealth and continue to let :whale:cause instabilities they profit from as most of us - who actually have the power (delegators) - lose!

Of course, delegating whales will always be a threat that the mass of good will have to vote above.

If governments ban “endogenously collateralized stablecoins", coins whose value is solely based on a different digital asset by the same issuer, the plan I am proposing will be a perfect replacement for the old ‘algorithmic’ one (that failed drastically)…

When people start directly earning cryptocurrencies, the Federal Reserve no longer can lien on their wealth and tax it! If those cryptocurrencies are given to people in exchange for their time and energies (not in exchange for $usd$) ~ we can discontinue the Fed, stop the devaluation of our wealth, and avoid paying income taxes that are associated with using the Fed’s debt.

This new system can begin by paying people USTC (as designed above) to promote the Terra Classic ecosystem … along with sellers that accept USTC as payment and specific instructions clarifying that earned USTC spent to those sellers is not taxable by state and federal governments because Federal Reserve dollars didn’t purchase them.

Sales taxes may always exist to fund social services & infrastructures…
Taxes to pay interest on debt should be avoidable! Don’t want to pay taxes ~ don’t borrow or don’t buy taxed goods/services!

The idea above is how we financially free ourselves ~ and it will take a community to achieve.

The Peg

The gold-weight pegging oracle can run as the previous:
“Several issues have been raised in implementing decentralized oracles, but chief among them is the
possibility for voters to profit by coordinating on a false price vote. Limiting the vote to a specific
subset of users with strong vested interest in the system, the miners, can vastly decrease the odds
of such a coordination. A successful coordination event on the price oracle would result in a much
higher loss in the value of the miner stakes than any potential gains, as Luna stakes are time-locked
to the system” (Terra-v1.1pdf).

Emergency Rebalancing Code (ERC)

If the balance between the staking and the taxation of LUNC transfers (on and off chain) encounters an inequality ~ once the gold-weight pegged 10 billion supply is increased (+1 LUNC) or the supply falls (-1 LUNC); a code will halt staking until taxation catches up or it’ll stop taxation until staking catches up ~ a worst case scenario (oracle breakdown or coordinated mass data attack) rebalancing code.

That balance (taxation{}staking) will (infinitely) be kept equal by accurate and immediate reporting of staking/trading contracts while the weight peg to total physical real-world gold exists to activate that ERC when inaccuracies are entered into and accepted by the Mainnet.

Coders: Build this (the system explained throughout this post) on a testnet and when LUNC supply hits 10billion ~ a governance proposition can be voted on for it to go mainnet.

Natural Inflation for Growing Population

As the real-world gold-weight rises, the max supply (LUNC & USTC) will also rise at the same percentage rate (natural inflation to supply growing population).

The (+1|-1) ERC activation will be set to the current gold weighted supply (rises in weight/supply accounted for).

The ChainLink (CL) Between USTC & LUNC

The gold-weight reporting (for stabilizing USTC & LUNC) will be done using the LUNC side ~ the rewards (from a portion of validation rewards) for oracles that keep the supply equal to the real-world weights will be paid in LUNC and will give LUNC its value ~ creating a dependency between USTC & LUNC.

Portions of validation rewards should also go to coders for their services (community pool).

Also, easy and free trading (no converting without trading ~ to maintain supply amounts) of LUNC to USTC or USTC to LUNC should exist on-chain…

Validation reward rates must account for the funding of oracles and coders (in addition to the validators). LUNC is where the work will be completed and the system will be maintained. LUNC the horse, USTC the carriage. The fuel and the vehicle into the future of money! The goal is limiting waste and achieving efficiency and effectiveness while maintaining fairness.

:trident::high_brightness::trident:

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Reclaiming to the community the Off-Chain Community Assets
Rebellion in Animal Farm: Let the community decide what to do with the $4M
Rebellion in Animal Farm: Let the community decide what to do with the $4M
Distribute the $4M in Off-Chain Community Assets Towards LUNC’s Revitalization
Community pool
Get The Money To The Community
Distribute the $4M in Off-Chain Community Assets Towards LUNC’s Revitalization
USTC peg recovery ideas
Proposal 10940
Governance Proposal - Introducing the Luna Classic Council
1.2% Burn & Development Tax During IBC Reopening
Distribute the $4M in Off-Chain Community Assets Towards LUNC’s Revitalization [v3]
Terra Classic Holds Reduction & Limitation Act
Amend Tax Structure to Better Capitalize Community Pool
Parameter Change: Increase RewardPolicy rate_min to 0.5
Parameter Change: Increase RewardPolicy rate_min to 0.5
Parameter Change: Increase RewardPolicy rate_min to 0.5
Parameter Change: Increase RewardPolicy rate_min to 0.5
Fund for Development and infrastructure
De-list/block Lunc from Binance and all non-compliant exchanges
Funding to incentivise Devs, the backbone of this community
One way conversion USTC to LUNC to re-peg USTC
Lower the tax rate to encourage higher on-chain volume
To burn 12% staking rewards Lunc (Proposal ID: 5176)
The PoS Dilemma
The PoS Dilemma
More LUNC and huge stakin increase
Burning rewards
Fund Devs With $4M of Off-Chain Community Assets
Fund Devs With $4M of Off-Chain Community Assets
Fund Devs With $4M of Off-Chain Community Assets
Reclaiming to the community the Off-Chain Community Assets
Reclaiming to the community the Off-Chain Community Assets

No one is going to allow their wallets to be linked to their identities. Being digitally controlled seems to me not. Privacy is a factor that cannot be lost. Or all of us who defend it will switch to zero-knowledge blockchain.

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To clarify ~ incorrect taxing or reward staking rates causing a supply imbalance (determined by the gold-weight pegging) will cause the ERC to activate and turn reward staking or taxation off/on until the error/imbalance is fixed and the supply stabilizes again to the gold-weight peg… If a node collects more taxes or staking rewards than authorized ~ it would be fined and those funds would be redistributed properly after the rebalancing act.

The Chain

A constant and immediate connection to our mainnet must exist between LUNC and all involved in building for or on it and trading of it if it’s to be a success…

Constant connection of all decentralized/centralized nodes.

In a disconnection event, if the disconnecting node only taxes or only rewards staking, the ERC code (on mainnet) would be engaged until the balance on the mainnet is regained (after the node loss - imbalance).

A node that both stakes and taxes should balance itself and never affect the mainnet supply unless it is imbalanced… Tracking causes of imbalances will be critical for preventing future imbalances.

A node going offline (disconnecting from the mainnet) that only rewards staking or only taxes would auto-stop its staking or taxing until it reconnects, and the ERC would be engaged on the mainnet (as already stated) until the gold-weight peg is reestablished.

The ERC would then reactivate once the disconnected node - that only taxes or only rewards staking - reconnects and disrupts the burn/creation process (again). The process repeats infinitely until it’s fixed (stabilizing the supply indefinitely).

Coders should have fun trying to design my theory of the Emergency Rebalancing Code (ERC) into the real world… In theory, it works… It’s just I don’t code ~ I am only a philosopher🫠

:pray:t2: Good Explorations! I think I explained this all properly :eyes:

Recommended Read

https://wiki.c2.com/?PrematureOptimization

*Automatic Readjustment Protocol (ARP) The Artificially Intelligent Supply Readjustment Mechanism (AISRM)

To fix imbalance(s), a (ARP~AISRM), engaged by the (ERC), could identify the out-of-sequence node(s) that is/are causing the imbalance and readjust the taxes/staking rewards of those nodes to rebalance the total supply and turn off the ERC (that keeps the supply from going over or under its max supply - pegged to the weight of physical gold - by more than one(1)).

Nodes in violation of standard operating procedures would be identified and dealt with accordingly - with no negative impact to the Terra Classic ecosystem.

Those who violate the balance a certain amount of times would be auto-suspended from accessing the mainnet for a certain amount of time. If a previously suspended node - that has completed the suspension time - causes another imbalance, they would be automatically locked out of the mainnet until allowed back in by a governance proposal and a passing of that proposal by the community.

:zap::tornado::zap:

A soft fork into this stable core is what Terra Classic needs to fuel the supply-burn and reconstruction…

:fire::balance_scale::gear::moneybag::muscle:t2: v. :skull_and_crossbones:

Governance Voting Limitation Act (continued)

Perhaps require a certain amount of lunc and time passed since delegation of that amount before the node can vote ~ so a coordinated attack is less likely… It’ll always come down to an active and smart community to stop coordinated attacks.

There are ways to prove being a unique human without disclosing identity — the goal in the governance is to provide a unique pivot to all given sets of wallets. (Security of data on the backend is paramount.)

Not sure about your whole plan, but your plan on how to tighten up governace voting is on the right track.

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Take a look at this proposal. I also use the Value of Gold, but in a different way.

Of course there are existing security designs we can adopt to add to the L1 core design…

Another interesting concept we should look into is:

Very interesting! :+1:t2::+1:t2::+1:t2:

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I still like my plan better. :pray:t2:

Jajajaja. :grin::grin::+1:t2::+1:t2:

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The Path to Ten Billion

If we do not redesign the TC core and attract utilities and users ~ staking rewards will exceed fees collected meaning staking rewards will come as newly minted lunc (inflation will happen) ~ the community needs to buy and burn and burn all staking rewards ~ doing that will make a max supply of 10 billion a reality and the market cap would then after be divided into less Lunc units, meaning each Lunc will be worth more! That added value gives value to all the burning and no rewards. Otherwise, the inflation will offset any burning done by the burn-tax.

Right now, people in this community are only concerned with getting their hands on the funds in the community pool and the ETH wallet [0x9538D438d506Fc426dB37fb83daC2a0752A02757]. Plans to make dev plans after payments are made… Not good people.

First Things First

Build the preceding core code to attract utilities and users, convert, buy, and burn Lunc with community funds (4+million$ of ETH), burn all staking rewards with the goal of 10 billion max supply in mind (each Lunc worth more as the market cap gets divided less) ~ then, after activity increases, slightly raise the burn tax to 2%.

The last hurdle is a few holders whose’ holdings of Lunc account for all of the 10 billion pieces and leave nothing for the majority (a big empty world owned by a few). We all need to commit to a certain max-amount of Lunc that will enable a deflationary period. Perhaps a ‘holding reduction act’ could be voted in ~ offering community funds to buy and burn Lunc from select (private) wallets (using the 4+ million $) with a premium added to the prices paid (to convince whales to reduce their size which is too big for a 10 billion max supply).

The ‘whales’ who want control (by holding the most amount of Lunc) will cause the stalemate that will be most difficult to overcome. If we overcome it, and build the preceding plan, we will have a whole new PoS stable coin system that will be next level up…