The biggest ask at the moment is to reduce the over-minted supply of LUNC & UST. Instead of asking people to outright burn their coins, we could re-enable swaps for whitelisted pairs and redirect hyper-inflated lunc & ust supply to alt-stablecoins (all non-ust stablecoins in terra: krw, gbp, eur …)
Validators re-enable swaps on the blockchain for whitelisted pairs
LUNC → alt-stablecoins (uni-directional)
UST → alt-stablecoins (uni-directional)
Effort wise, this change should(hopefully) be easy to implement by the core devs
As opposed to burning, people can swap their luna/ust to alt-stablecoins for its future prospective peg value. The discussion on when to fully enable bi-directional swaps can be set for another day based on the outcome
Well I think the idea is worth a go as an alternative since it appears many have their concerns on most of the burning proposals already made and voted on. However, I would like to know what happens to LUNC after the swap. Is it burnt, exchanged? In which case it would be like trading for another token. If so, then I’m not sure how this help reduce supply since the swapped LUNC is still in circulation, just changing hands. Just need clarification.
This proposal is not a burning.On the contrary, this is a proposal to destroy the Luna/
Yes, lunc is burnt to mint stablecoin. This was how on-chain minting/burning of luna/ust worked. This isn’t like the astroport swap where you would exchange coins (without changing supply)
Example: If you swap 1 lunc → krw, 1 lunc will be burnt and ~0.1 krw will be minted (at current rates)
Thanks for the clarification. But won’t the proposal require liquidity for the swap to work? It sounds like a buy back and burn then. Unless I’m still getting it wrong.
This isn’t liquidity kind of swap. Call it more like ‘burn lunc to mint alt-stablecoin’
Then I think it’s a decent proposal if passed and implementable. Since the swap will be done at freewill, it may take a while to achieve reasonable drop in supply unless LUNC owners find the swap more appealing. On the upside though, I believe it’s makes the most sense since most would prefer getting something in return for burning their LUNC, than simply burning their money sacrificially.
Any burning or way to reduce UST/LUNA is really nice but we need to compensate devs, validators and everyone if we want to provide some value to this asset. So, i think that any percent of these “burned” coins should go towards these people.