While this proposal presents a set of trade offs that I’m not personally excited about (I’ve listed my own ideas here), it is sufficiently low risk that I would support it more as as signal that a shift in focus on USTC as a differentiating product for the chain is important.
Reasons why I don’t like these trade-offs:
- I hate taxes - nuff said
- Capital inefficient - I always liked the premise of a stablecoin which was backed by the activity/strength of its economy vs the value of its capital reserves. UST/LUNA grew too fast (inorganically) for its own good and suffered the consequences.
- Too slow - I don’t think this proposal really moves the needle for USTC or LUNC as the amount of transaction tax which would be required to recapitalize $11 billion worth of USTC seems like it aint gonna happen.
In any case, if the community is most likely to rally around this proposal, then I would support it.