I hope you are all well so far, at least as well as you can be after these events. Our system and our lives have been hit hard. Many of us completely wiped out, the money supposed for our childrens future gone.
And I cant say it any more honest: It’s a catastrophy.
But there might be possibilities to help luna (and us!!). I have some ideas that could help. But first of all, I have to confess that I’m no IT-specialist and I have no deep insight into the real mechanics of terra luna. So if you say, thats completely crap what he is saying, then I’m sorry to have wasted your time. It’s just ideas.
And if you say, I have heard this before, then I’m also sorry. This is my first post. I dont want to sell anybody others ideas as mine. I did not read many posts here or have seen videos of the terra team.
As I see it, we have 5 problems:
a) an inflating token
b) a mini token-price
c) the danger of hostile takeover
d) the system cant defend itsself good enough
e) collateral vannishing, thus ust interest getting completely unsustainable
So we have to adopt our system, fast and consequent. And it all has to serve two purposes
a) reduce the amount of luna tokens
b) keep anchor (and the yield reserve) alive
I believe, that if we manage to show that we can sustain a certain amount of interest-rate, many people will come back. But be honest, we gave more money, than we had and are still doing. So the yield reserve is slowly declining again. This combined with the fact, that more and more collateral is being removed, will empty the the reserve.
This must end. We must make clear, that our interest rate is sustainable. And therefor we need the greatest part of the btc reserve. Terra must provide it in some form as collateral AND IT MUST BE MADE CLEAR THAT ITS HERE TO STAY. No matter what!! As long as this almost 1B collateral is there, there will always be money in anchor. And that means people will stay to get it and that means the system will go on to exist.
But that also means that nearly 20% interest are unlikely to happen ever again. Only money that is created by this collateral can be given, so interest rate will drop significant.
→ Anchor must make itsself sustainable
Thats why we need part two of action. Some Kind of Lunatoken burn. If not by the later described Burning-Staking, then in some other way.
So, in my personal opinion, we should/could do 2 things.
We create 2 new types of staking for luna, replacing the one we actually have.
- We create a kind of staking, that has only one goal: Burn Luna!
It’s different for these reasons:
a. It gives you NO voting power. So all the millions of lunas purchased in the last days can participate without danger of a hostile takeover.
b. It pays out only the stablecoins you got normally rewarded.
c. All Lunas you would normally receive, will be burned and their UST value is transferred partly to the community pool and to the yield reserve (but at first not spend! Just to show we are sustainable and our yield reserve is even rising. So stopping talks about Luna being unsustainable.)
→ So we dont reward ourselfes with more lunas anymore, we reward ourselfes with reducing the supply and so making our own lunas more expensive.
This seems similar to bLuna, but with one great difference. You dont have to swap it. Right now you get 0.04bLuna for 1 Luna. I doubt anyone will do this, even if he wants to help stabilze the system. By this you can just keep your Lunas as they are and still help.
→ Once we have managed to repeg UST we start to use new minted UST to buy more collateral and so slowly rising interest, what one the other side will attract USTBuyers again.
For there is still the problem of a hostile takeover
- We create a new type of Staking for voting.
It’s different for these reasons:
a. You can only delegate manually - lets say - 500 Lunas to it. No more.
b. All stablecoins you would normally receive are transferred to the yield reserve
c. The Lunas you receive will not be paid out to you, unless to choose to delegate, but instead will increase the amount of your voting power-lunas (via auto-staking?). So you can have in fact more than 500 lunas in this staking.
→ So you will not be only awarded for your (small) staking amount, you will be rewarded for your loyalty to the system. The longer you stake, the more votingpower you have, and this without the danger of some whale taking over controll. If you choose to withdraw you can do that, but you would have to start possibly at 500 again.
The second staking should be a small amount, so that most staked Lunas work as Lunaburner. The original staking and the new one could coexist for about one or two months, then the old one should loose its voting power and people migrate to the new one, sending eventually many Lunas to the burning-staking.
Considering the giant staking return right now, this should also be limited. For example, if we decide, that the voting power should rise by 5% per year, then the system should lower the luna rewards accordingly if needed and of course burn the rest for ust and send it to yield reserve and comminity pool.
Both stakings are designed to help keep the yield reserve up and make interest sustainable in case something unforseen happens.
Due to the fact that 500 Lunas are more or less nothing at this moment, the creating of a proposal should be backed with – lets say- 500$ and no more Lunas to prevent the spamming thats now happening.
And i guess these things could help prevent another attack, for the attacker will know, that the system is designed to burn as much luna as possibly.
a) Interest Rate sustainable (but smaller)
b) Tokens permanently burned (and system designed to reduce token number)
c) Community Pool and Yield Reserve filled with UST in case we need them
d) Collateral slowly rising over time
e) No danger of hostile takeover
Yeah, thats it.
Just some Ideas. As said, no deep insight and no meaning to steal any ideas. I would be glad, if you like it and if you think it’s bul…hit then you may also write it here.