The Sanest Compromise - Combining the Terra Ecosystem Revival Plan and the FatMan Plan

Totally agree. Making assumption that big UST holders are rich and less affected by this incident is completely wrong. I know several organizations deposit UST and earn interests on behalf of their customers. So setting a max cap repayment for all addresses is not fair in this situation. On the other hand, big UST holders could be paid gradually or given LUNA tokens according to their stack.

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forking Terra will not save it. Everyone is going to dump the new token to save the savable. The only way to make Terra rise from the ashes is to make whole the UST holders, which were in by the promise of a savings account, and end up with the first crypto bailout ever. This is going to turn oblivion into renewed confidence in the ecosystem. Also, burning LUNA will get LUNA holders whole (or partially) in the long term, as they were in by the promise of a volatile asset.

Iā€™m holding LUNA and UST, but saving UST holders will have a way more effective impact on LUNA holders too. The opposite will not work.

OT: pretty new here. How can a proposal be voted?

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commendable and respectable service, +vote

I agree with combining the FatMan plan and the Terra Ecosystem revival plan. Please note that the 50k cap or 250k cap or whatever amount has been quoted around is only an example/estimate. The cap amount may be higher depending on how much funds LFG still holds in their reserve on exchanges and so forth. LUNA holders should be the ones receiving new LUNA v2 equity, on that we agree. Pre-depegging UST holders as small savers and debt holders deserve to be made whole and this is the likely legal outcome as well.

By the way, if this plan is successful, it would repair Terraā€™s image and the confidence of a lot of investors towards any future venture as an L1 or collateralized model. Iā€™m sure theyā€™d be able to raise funds explicitly for this purpose. The remaining LFG reserve, however, is explicitly intended for UST.

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@wlawyer

Right now, LUNA/BUSD is moving 2.97B (Binance). The next trading pair with largest volume in 24h is BTC/BUSD with 513M. So LUNA/BUSD is the most traded pair right now!

An interesting idea would be to get some fees from those trades. Even 1% fee would amount to 29.7M in a single day. At this rate, with a 2% fee and the same volume, we would make about +50M per day, or $1B in 20 days (assuming I didnā€™t miss something in my calculation).

This seems a good way to start gathering some funds. Some reserve. Then we can decide whether to buy-back and burn some LUNA (to benefit LUNA holders), to give the funds back to UST holders (repayment) or a combination of them.

I like this idea because people that are selling (say, b/c they made a x3) are only paying a 1-2% exit fee. And same with people buying in.

Other ideas, such as selling LUNA from the Foundation (is thereā€™s any left) need to be very well thought-out, because it would screw current LUNA holders AND new buyers. So if a lot of LUNA is dumped, basically, it would be paying people who lost their money, with the money to be lost by the new buyers. How is that making the situation any better? Say you repay $1B with the $1B some other people are going to lose.

Thatā€™s why I like the idea of trading fees.

Could you consider this on your proposal?

Also, getting investors needs to be well thought-out too, because if people with UST are going to leave the ecosystem (most likely and understandably so) once they obtain their money back, whatā€™s the incentive for an angel investor to put $1B? If UST holders leave, the incentive for angels decreases. And if we dump any LUNA the Foundation still has, that screws LUNA holders, so the incentive for angels decreases too. Thatā€™s why any decision needs to be very well thought-out.

Anyway, great, great summary!

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Marc1 So what I hear many saying is that there is no money and it would be hard to do a burn! Right?

So then where is the logic of starting something new? As in 2.0 or Fork?? Where is the money to pay others back? That makes no sense!

What it seems like is that because many bought in to average down like me and there are likely many also gambling hoping it will recover too. Guess what, we are all hoping it recovers and averaging down to hopefully get some or most of my money back.

Are some longer term holders butt hurt that some will make a lot of money if it goes up? If so, that is a very childish position to be jealous that someone makes money along with you.

Why donā€™t you buy a bunch more now too??? Letā€™s all make money!!

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Exactly. Make whole as many individuals as possible up to whatever amount is possible by doing it on a per wallet basis across all chains based on whatever snapshots are agreed upon. Itā€™s a bit messy with centralized exchanges but probably let them deal with their users and just treat their wallets the same as everyone else just like what will happen with pooled funds in LP tokens. Whatever cannot be covered can have payout over time based on x factors, equity in new protocol if that makes sense, etcā€¦ Even having phases to this thing to get it sorted out for the most people as possible would be great, 50k to every wallet right away, followed by another 50k in 2 weeks -6 months to those with up to 100k and work in steps. Whatever it takes to make it right as quickly as possible for the most amount of people. Having some money back right away so people can have the float to wait it out would be very beneficial to so many people

50cent? are you joking?? we are UST holder buy ust as 1$ not 50centā€¦not agree with your proposal

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Scam proposal. You canā€™t just redistribute the coins in this arbitrary fashion and rewrite transaction history. If you want to fork, you need to first halt the chain and second stop all trading on all exchanges. Then you can fork in such a way that each Luna is treated in the same way. If this proposal goes through, duped investors will sue the team and the resulting chain will be doomed before it begins.

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Simply the best , well thought and balance proposal to date. Certainly have not read anything better. TFL/LFG need to speak up on this soon

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Hello @wlawyer ,

I understand that you want your money back and quick, but the ecosystem have a failure and it was exploited causing a collapse.

Trust must be restored by hard-work and concrete plans.

Your solution will be a crash 2.0 plus Terra ecosystem end.

The ecosystem needs to fix the failure and be slowly restored by burn!

Note that the Coin burn will not burn your holds but the one purchase by the fees.

Your UST hold will be restored in a midterm, as soon Luna is restored.

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Stop with the forking ideas . Why make 3 problems solves nothing.

Do you want lunaabc lunalite lunaultra etc .

Next we will see a pow luna as well

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This was my most risky move in the crypto market.
I gave 10% of my deposit to support when the system crashed. Taking into account the fact that my entire portfolio was at -60%, and I also had to sell part of good assets with a big minus, this can be regarded as about 30% )

Iā€™m not asking you to give me more than I invested ā€¦ but it would not be fair to give less)
I just want to stay with the project and not get thrown overboard.
Therefore, it would be fair to stay on much more favorable terms than those who ran away taking money, and then want to return.

me being just one of themā€¦ 99% of people lost speculating and tried to profitā€¦ and now all of a sudden want to leave out the 0.01% who made gains because ā€œthey just speculatedā€ :sweat_smile:
Irony

50c or approx .15c on market now? seems like a deal to me

UST holdets coming as digital dollar buying at 1:1 and holdomg for 1:1 .

Think of it yourself. When you see market is vefy volatile, or waiting for oportunity, where do you hold your fund at the exchanges ? Stablecoin. UST, USDC, USDT, BUSD ā€¦

Now imagine suddenly you wake up and without even being in the market or trading any coin you find you only have 10% of that money in your acc.

I trade coins, traded equities for long time also. If my holding shares or coind next day is 50% down, i would get upset. But cant say anything as the performance of that share or coin wasnt good enough.

But having my money sittting in stablecoin and looses 90% of its value, that is unacceptable.

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Many people seem to think that $1 bitcoin is more valuable than $62,000 bitcoin)
Or the moon)
Ask the blockchain if it makes a difference?)
This is a crypto marketā€¦ there is no price as such, but there are coins and tokens. And all of them are bought at the price that you are ready or can afford.

Therefore, a refund can only be made on the basis of an analysis of all transactions (which is practically unrealistic and will take an enormous amount of time).
Whoever bought a stablecoin for 30 cents should also receive 30 cents.
And with tokens, of course, the story is the same as with shares.
bought for 0.0005 or 100 makes no difference.
The evolution of the coin will put everything in its place.
Now they will burn all 100% and goodbye to everyone, so that they donā€™t quarrel who is an investor and who is a speculator)

This is by far the best proposal i have read thus far. Thank you.

There will be no native algo stablecoin on the new chain.