I’ll preface this by saying I’m ok if the answer is simply that all seigniorage was intended to be burned and thus that’s the route to go BUT, if the reality is that it’s truly up to the community to decide what to do with excess Luna beyond 10M I just wanted to float an idea out there…
Luna on exchanges is getting pretty thin, what if we decided to mint bLuna with all of our excess community Luna and then take an aggressive loan from anchor and use that UST to buy Luna off the market? Basically leveraged buybacks. Corporations do this all the time to bolster their share price, can’t we as a community use our capital in a constructive way that boosts our value in the long run?
I don’t know the full legalities of this and if TFL would have to abstain from any voting that took place, but I’ve seen many ideas floated around about what to do with the excess funds so I wanted to just float the idea.
Something along the lines of:
Mint to Bluna—> Borrow UST—> Buy Luna from exchanges—>Collateral value increases so you can withdraw some and instant burn back to Luna and permanently burn.
If this is perfectly within our legal right to do, one potential issue that could arise would be that once a quorum would be passed, bots/traders would be interested in front running the market buys, so perhaps some sort of leveraged buyback schedule would need to be in place. Perhaps someone has an idea on how to mitigate this.
Again, if the team feels strongly about a straight up burn with community funds then I’m okay with it, but if we can use the funds for leverage to increase the scarcity and burn of Luna (the ultimate goal), I don’t see why we wouldn’t entertain the idea.