Im still learning this network, so bare with me. But, couldnt the supply of luna classic be used to over collateralize UST If deviaton from peg (From future UST -Lunav2 peg) were to occur? Program UST to peg to USDC or other acceptable. Mint in respect to all affiliated usage that demands a need for market cap to maintain 1:1 peg.
Allocate luna classic as over collateralization Behind UST
In the event UST depegs under .98;
Assess the collateral pool, if not available to reclaim peg off that, in an extreme case, luna classic 20% custody wallet will activate and regulate further. Lasty will be minting of luna v2.
Lunav2 faces capitulation or rapid change in market, it will have a switch in the mint protocal under certain conditions that executing could leave the network vulnerable.
Instead, Luna classic will inflate. After re peg, the excess will be x%burnt, and x% rewarded to stakers.
Incentivise luna classic holders by offering a competitive staking APY, funded from community pool (transaction, gas, etc…).
Transaction fees go to 2 things;
Overcollateralization pool
Staking rewards/community pool (accessable via UST)
- 50% luna classic market cap is used as collateral (provides either liquidity or market cap), 30% is used for rewards to stakers and the last 20% is to be locked up.
Lunav2 - store of value
Luna classic - liquid, utility, dAPPS/protocals.
This will provide for market dominance exposure in V2, while bringing volume, builders and liquidity into the network. UST (modified) will grow as a decentralized monies establishing web 3 presence.
Its secure, buildable, liquid, and can serve the purpose it was created for on a large scale due to its technology and potential liquidty.
All of the lockup and safety protocols implimented day 1.
Just my thoughts. Luna classic can bring value as an investment sector and project funds, for true decentralized finance network, if gifting holders with incentive and stability.
Terra can be like the ethereum,
Except, king of true Defi protocals/dAPPS for all levels of users, investments and speculative traders.
Having this launch, i truly believe that those affected can once again see the fruits of their labor, and rebuild a strong network that can be looking at being the most advanced, profitable and secure network.
TerraLuna can be great. The world needs it in our ecomomic times. The world needs Defi from corruption. These are the protocals for it, developers, kwon, dont let this fail. Myself, and im sure many others, know this network can change alot of lives, can further web 3 and be compliant through regulation.(honest, collateralized audits).
We must make a decison, or Defi has stopped being Defi.
If i can assist, i will in any way i can through this. HODL.