We, the team behind Cubics, had a few thoughts during our meeting today, and want to suggest what seems to us is the most rational idea to save LUNA. In regards to UST there are already decent solutions proposed here, so we won’t cover it.
We would like to propose dividing the problem into 3 timeframes (and their according solutions with the lowest downside for everyone involved, whether pre-crash or post-crash).
Genesis until May 10th: Distribute tokens to all holders pre-attack at the dilution rate (around 1:20000) - no loss to old buyers
May 13th onwards: Stop with inflating supply any further, come up with a plan to burn 50% of supply over the next few months (either via treasury buy-backs or on-chain incentives) - no loss to new buyers
May 10th-May 13th: The problem-period, but we believe it’s solvable by writing a script that distributes tokens at a sliding rate, according to exact time of purchase. This script is sent to exchanges, and exchanges can calculate the amount to be distributed based on their trading logs. For the public chains like Terra, ETH, BSC, etc. the trading logs are public, the team would just need to download them (I’m sure the guys at Covalent will help). - no one loses (just a matter of time to work with exchanges on this, and write scripts to access on-chain trading history, Wormhole primarily)
This is it. 3 timeframes, 3 individual solutions. But all are solvable, and (almost) everyone is happy.
UST is easier to solve (reimburse people, but at less monetary value). In fact, everyone will end up with 25-50% of the pre-crash monetary value, both LUNA and UST token holders. But no one will lose “everything”. Our idea is in regards to how to democratize losses, considering the lowest downside. There is no solution that magically re-creates all value back to pre-crash levels. But, we’re sure, the Terra community can rebuild that loss.
Im a holder of Luna. Bought at 59.1$ as right before attack begins into deeply. Never sell it, and traded nor shorted. Also not stacked. As reading through social, I’m the most stupid one, that is still holding. It is still there in my spot account. Basically holding from last october. Switched over on march to avax, and moved back to luna at that day :_((
I beleived this ecosystem, crypto decentralization, the future of world’s financial core element is this. Not a print money.
Im not a trader, thats why I hold most of 99% times. And this is my life savings. Dont blame me, this is how me is.
Now I’m lost, disastrius condition.
I still hope you guys restore system as quickly as possible, and restore full funds as like as system before attack. Can proove my spot account. Its still there.
Still so sad, there was thought came into mind about suicide, but no, I will survive. Because of you, because it is not natural, it was planned attack.
Still holding my spot luna funds, that is bought before attack.
Before any of those three steps, the team needs to make sure that the same attack with more funding behind the attack cannot be used to derail the new chain. If that’s not done, then any distribution scheme is meaningless.
None of these proposals account for something essential: The second the fork goes online, investors will flee again, triggering the same death spiral. Restarting the music won’t change the rules: The music will stop again, and many of you won’t have a chair to sit on.
No one actually believes that there’s any value left in Terra: They’re just hoping to get their money back.
There is no fix to the issue: It was a Ponzi scheme.
You cannot create value out of nothing. You cannot declare that people who stake your coin will earn a riskless 20% APY. You cannot declare that your coin is stable because it is backed by an algorithm. The only reason why Terra appeared stable is because people bought into the idea that it would grow forever… The second people start doubting that, the death spiral begins.
What do you think of pairing this token distribution with a slow collateralization of UST? If we open up minting of the new token by adding to the (new) collateral pool, it’s possible we can bootstrap the UST back close to its peg (likely even at fractional collateral).
UST holders can choose when to cash out (wait for full PEG, or at whatever fraction based on their risk tolerance).