Summary
The goal for the 1.2% tax for UST operations is not clear. Although the goal can be rising the price of UST back to 1.0 USD but there are many negative side effects of this new tax. Note that the same tax can help to LUNC since the circulating supply of LUNC is too high. That is the supply rise dramatically from 1B to 6.9T. Also, UST is a stabile coin (with the same supply as it was before) and for LUNC ecosystem it will eventually set again 1UST = 1USD. As a result, by the cancellation of the tax for UST, more and more people can use UST for their operations in crypto ecosystem.
Motivation
Otherwise, if the tax is hold 1.2% for UST,
o will lose of DEX liquidity and volume.
o will lose DEFI usage of UST.
o will do more harm than benefits, losing competitiveness to other similar chains.
o no one will want to hold UST in this situation (no clear future for repeg).
o soon no one will use it and we shoot ourselves in the foot.
o the strong side of the UST, which is interacting with the other chains, wormhole, and
IBC will lose its effectiveness.
o the volume will continue to drop (as dropped from 2B to 2-10M UST daily in 1 month).
o has no positive effect on the price.
Proposal
To summarize, there is a need for an urgent cancallation of the 1.2% tax for UST in order to let people use UST for DEFI and other activities as before the tax.
If can find enough support, will open proposal soon.
what matters here is the burning rate that is currently higher than the previous days and remains at that figure.
For me, UST currently has no use if it does not return to 1 dollar.
Before 1 USD, we need gain general using of USTC if we hold this tax %1.2 no one will use and eventualy will fail USTC repag to 1USD.
If we cancel the tax and encourage to people again using USTC for DEFI, Gaming or IBC transfer etc.
We will success to more and more people want USTC to 1 USD
Nobody using it anyway beside us from reward obtained from the stacking that most of us trade to turn them into lunc, cancelling the tax on UST wont matter much, better be burning some while nobody using it, when and if it reach out over 0.50 cent pershap then there be a use to cancel any tax from it but until then, it has no impact but the fact that we burn a little UST everyday. If you can show proof of anyone beside us still using it, i would be more than interested to laugh at it coz its totaly useless , if there is outside dex pools still using it, the reward arent given in UST so then again no impact.
Until its repeg or close to, nobody will use it, those holding it are either whale that wanna get their bag pump, pools that are stuck with it from the collapse or poeple that trade it for quick volatility. Again my point is simply to show that this would have no impact since nobody will trade a stablecoin, not being peg or that volatile, so there is no point on removing the tax, keeping it althrough slowly help to repeg it.
Main user of UST is a Ancor Protocol ( Binance support ANC ) as you know binance is a most valuable supporter of LUNC ( burn trading fee ) so we can make a gesture for them.
Also UST is using from, TerraSwap, Astro DEX, and IBC-Wormhole transfer. We cut all this using method.
let the UST work for us. and more and more people will us UST
