UST holders compensation - got to act quickly

General
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I am a Luna holder and believe in no case UST/aUST holders as of May 9th should be discarded by saying Terra is more than UST. It is very important that Do Kwon, TFL, LFG and everybody else involved act quickly, as civil and criminal proceedings already began in Korea and Brazil, other countries are likely to follow soon, including Singapore and the United States.

Emotional manipulation that UST holders contributed to collapse of Terra is absolutely unsubstantiated. If Terra was attackable, it would be attacked. If the model is not solid, even restored peg would quickly be smashed, especially given UST deflation, as less capital would be required to shatter already fragile mechanism. Their capitulation is absolutely reasonable behavior and calling them «cowards» and «fuders» is unfair, constitutes a pressure and manipulation on the side of Terra equity holders.

I am a holder of Luna till the very end and strongly hope for project recovery. However, I do not think until UST holders are compensated, as senior debt holders, any new project has any potential at all. The size of compensation and wallet size caps are separate topics. What’s important now is that LFG TFL Do Kwon et al, as a group, commit to compensate UST holders, and not in the form of shares of the new project (new equity), but in the form of hard USDC cash from LFG reserves, PERSONAL SAVINGs and raised capital.

If this does not happen, the new project will be plagued with accusations of default to the prior senior debt holders, law suits and criminal investigations. Law enforcement will go after Do Kwon et al and Terra 2 for life, no investor will ever invest a dime in the project, the devs community will collapse and Terra will seize to exist. Do Kwon and Terra management will face criminal charges and arrests. I think everybody will agree that any successful new project development in such environment is absolutely impossible. I, as a Luna holder, on the other side, have an interest to own a share in a successful project, surely just like all the other Luna holders.

I understand that equity holders have suffered the most, yet, I believe, that’s the only way forward. Equity (or governance tokens) is the riskiest asset, as opposed to far less risky stablecoin debt. LFG should take responsibility for paying off debts to UST holders, partially, at the time of depeg. Our Luna price has always been driven by the demand for UST as a stablecoin, and the Anchor yield. We, as governance token holders, have an obligation to ensure that LFG and Do Kwon personally pay off its UST obligations, so that Terra 2 is not plagued by legal proceedings.

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We need to know where LFG funds went from their deposit into Binance. Lot of moving around and manipulation between heaps of addresses to finally end up on Binance. Chain doesn’t lie

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Agree strongly with Thommo, and it will be revealed in court, I am sure.

Also I read some of the explanations written by numair and the other people. I am participating in the petition against DK and his partners in South Korea. I don’t know how things work in Singapore… or what your jurisdiction is, but the lawyers of Korea seem sure that it is possible to press criminal charges against the leaders of Luna although full compensation may be difficult, regardless of what kind of assets we held.

Hope you all the best.

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Is not mandatory for UST holders to accept the “20% deal” of new token. You can choose to hold the debt. The new company still responsible to honour the old debt (What Know call bad debit). How long will take? Don’t know, but if they don’t want to be flooded with lawsuits, a clear plan needs to come out soon.

The bought back a large portion of the UST with the Luna minting (but never clear how much, transparency zero). So the circulating UST is well below the original 11B debt. If they reduce even more with the “20% opt in”, good for Luna.

But then again, you can just choose “no”

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I agree tl.tl

I only got into crypto because of anchor and UST. I have a 6-month old baby and my family’s investment was entirely in anchor as we understood this to be a low-risk crypto option.

We held our UST throughout the depeg based on reassurance from the terra discord moderators that the peg would return. We were even persuaded to swap UST to luna, transfer to CEX to swap back into UST as we were told this would help the peg while also recouping some of our losses. In the last hours before the chain was halted we sold 75% of our UST at a price of 0.25, trying to salvage some of our investment. We still have the remaining 25% of our original UST.

For us, a luna V2 token allocation as compensation is not overly attractive, especially given the new terra chain will be without UST - the main usable asset for us.

For my family, and no doubt many other users like us, reimbursement to our pre-depeg UST value is all we want. I would be happy to forego the interest we earned over the course of the year, and just have the initial capital returned if this means the funds can go further and help to reimburse more users.

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You may need to accept that there is not enough fund to pay out. There however is a little bit of LFG Reserves left. Users can either throw Do Kwon to jail and be compensated for pennies on the dollar, or fix what’s broken and try to get everyone back whole eventually, using what is left to kickstart a new old enterprise. One of the greatest issues is the UST holders currently have zero representation. Do Kwon has defaulted. His money cannot be exchanged, thus it is by definition not money. Please see our proposal. It assumes Do Kwon is out of ideas and new leadership may be required.

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I’ve answered in another thread - funds availability does not determine responsibility. Kwon et al will soon be under criminal prosecution is several jurisdictions. Securing funds (personal savings, fundraising, etc) will be vital not only for project success and capability to support the fork project, but simply to avoid jail terms, imo.

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