These proposals are all way too completed and do not reflect how the free market operates. I would suggest taking a simpler approach which is what a government would be likely to do in this situation as evidenced during the GFC:
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Determine the current capital/collateral still held by LFG and Terra Project and if it is somewhere in the order of $1B then you have something to work with. If not you will need to go to the market to raise something in this order.
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Redeem UST positions at 100cents in the dollar up to $10,000 (or an appropriate figure) for wallets that held pre-the attack and still hold their positions (Similar to government guaranteeing bank deposits up to a figure). If people have sold their UST or been sold out on margin calls then it was their choice and they have received back 15c to 99c in the dollar at their election to sell or lost their funds from margin calls. They either chose leverage or to exit and didn’t want to wait and see if the peg would be restored or a bailout proposal actioned. They are no longer holders.
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For LUNA holders, they chose to invest in a risk asset similar to owning shares in Lehmann Brothers, Bank of America, Citigroup or Goldman Sachs during the GFC. Actually all companies were distressed during the GFC and most had to raise money by issuing shares to institutional investors at very low prices to survive. This is no different for the Terra Project. If you require further capital in 1. then you need to issue LUNA to recapitalize the project up to at least $1B to execute the bailout plant. This may expand the supply of LUNA but saving the ecosystem is paramount and it can be dealt with over time as per below.
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With the remaining capital/collateral after completing 1. go and buy US Treasury Bills, USDC or a basket of USD backed safe assets and stablecoins up to a target balance for UST. Use this as collateral to reset the peg of UST to a collateral backing per the target (e.g. target 1UST = 10c). The remaining USTs are now backed 100% by USD equivalents at this figure in the dollar. The ecosystem now has a proper stablecoin again. You could consolidate the remaining USTs on a 1-for-10 basis as well to reset the peg to $1 by redeeming them for UST V2s.
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A tax needs to be implemented on all LUNA and UST transactions going forward in order to burn a large amount of the LUNA supply over a period of time to make the token deflationary. Instead of low fees, all LUNA transactions will have 1% to 3% of the transaction size go into a pool that gets sent to a burn address. Similarly UST transactions will have 50 basis points sent into a pool which goes toward buying LUNA and burning them. Holders will lose least from the short term burning tax while traders and speculators will pay the most.
If you complete all of the above it will stabilize the ecosystem and lead to enough of a recapitalization that the project with be viable going forward. Once the LUNA supply has been reduced to a sensible target level, the transaction tax can be removed. The ecosystem can then move forward, rebuild trust and grow from this base over time and reach its destiny.
My only other comment that the community should be aware of is that the United States Dollar isn’t a stablecoin. It is a floating currency that if something terrible happens to the USA, it is seriously devalued against all currencies (see what’s happening in Russia with the ruble). The UST was an attempt to create a stablecoin pegged to the USD but the collateral/initiative backing it was an early stage tech/blockchain platform which clearly does not have the same credibility as the United States of America’s GDP, economy, governance, etc. Potentially one day if Terra recovers and is worth $50T+ then there will be potential for an algorithmic stablecoin backed by an individual or basket of digital utility tokens. It was far too early for this to work though.
I hope this helps and the project ecosystem recovers.