Final proposal to revive LUNA and TERRA

I will start with a small reflection:

The world of cryptocurrencies moves large amounts of money. But it has two problems, the first is that most of the projects are created by software developers, who do not know about economics and finance. And the second is that many investors do not know how to measure risk, in an industry that is in its infancy. They want to become millionaires overnight.
The only way to earn money is to work, save and invest, in a smart and diversified way (don’t put all your eggs in the same basket).

The proposal:

The first thing we have to understand when we are designing an economy. It is that it cannot have errors, you always have to think that the worst can happen and design a bulletproof system. Because design errors can make some millionaires and others unfairly poor, in an instant.
The economy is a complex system, no one will ever be able to control it. So to succeed, our economic system has to be much simpler. The economic models that seek to control all the variables end up being Ponzi. Where those who enter first benefit at the expense of those who enter last.
Before creating or investing in a financial instrument, we must ask ourselves. Where does the money to “earn” come from? If the money comes from a limited source, at some point it is going to run out. When that money runs out, the investors will leave and the project will die.
If money comes from an unlimited and inflationary source, over time there will be more and more money, making it worthless and less. Harming all holders (Look how the purchasing power of the dollar fell over the years).

Money needs to fulfill 2 things, to have value. Be limited so that people want to use it.

I believe that there is enough interest in TERRA, so that one of the two requirements, we have solved. What we need now is to formulate how to make LUNA something limited, without harming or unfairly benefiting new and old holders. So I think it’s best not to replace existing LUNAs with a new token and arbitrarily assign who gets more and who gets less of the new token. What you have to do is: stop the moon emission and burn the surplus of LUNA, until there is a much more reasonable supply 1B or less.

Some of my proposals to burn LUNA:

• Artificially raise a high value, transaction fees and burn them as ETH does
• Obtain financing and repurchase part of Luna that is in circulation to burn them.
• Create some kind of market, it can be artistic NFTs, where you can use the moon and burn the proceeds.

I leave room for you to propose more ideas on how to burn, without taking the LUNA out of the current holders.

On the other hand, I want to propose investment alternatives for those who want to stake LUNA:

To do that we have to understand that the rewards have to come from a real source of income, which is not inflationary. I propose that LUNA pays dividends, we can use part of the income from the terra foundation to pay these dividends and that the other part of the income continues to be used for development.
A system of collateralized loans can also be created (if it does not already exist on terra). So holders who invest LUNA receive interest for lending their money.

Finally, I wanted to talk about how to repair part of the losses that UST holders suffered:

I think UST should be thought of as bonds that need to be restructured and a fund created to repurchase those USTs (probably at a price of less than $1). And remove them completely.

If you like the idea. Please like and share so everyone can read.

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This proposal is a good idea

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We cannot agree to this. You need to understand what went wrong before jumping back into the ring. Not doing the root cause analysis is a surefire way to lose everything.

  1. Any proposal needs to acknowledge the problem and point out every single failure point that needs robustness.
  2. Any reserve backing that contains less funds than the total value of the cash will at some point break.
  3. What strategy will you produce value after the depeg occurs to bring value back in time?

Unless you have the answer to these then your currency will eventually hyperinflate after another George Soros breaks your small reserve.

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Luna loses its value due to hyperinflation. Which was generated when UST lost their peg. This proposal seeks to make Luna independent of any other token and that its value cannot be affected by an error.

This proposal is a good idea

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Terra need to stop mint Luna like letting them run like the free flow open tapped water, no one will buy Luna if they are like sands on the beaches and water in the ocean

Luna is the face of Terra, not UST!!! Just like USD for United States, not USD pegged with Gold (which proven failed and unpegged long ago)

Below is my suggestion in another post:

Whoever suggested sacrifice Luna to stable the peg, you all are putting everyone in big troubles. Please go back to school for economic 101 before you all mess with other people real money.

Luna is the currency, not UST. The currency is confidence of the public toward the system, not the peg, thats why USD didnt peg with Gold many years ago

USD and the whole united states would have doomed if they didnt unpeg USD with Gold back then

By treating Luna like Shxt, you all are destroying the confidence of public toward Terra and the whole system

Basic ecoonomic 101, if Rolex watches are under unlimited production, very soon they will be cheaper than Casio watches

As for Terra, please hire an economist if none of you have the knowledge of how a currency works

Save Luna, not UST

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Luna is not the currency. UST is the currency. But we can reverse it to allow Luna as the gold backing for fee payments. There’s no way anyone will agree that UST is not the currency. UST holders already own all LUNA at this point.

so wrong with the idea of regenerating a new code, this is the first time are you sure there won’t be a next time, is creating a new wallet the best solution each time? hope you guys should consider return to the original plan and seek support from partners. In the opinion of others, I agree that it is advisable to burn tokens for each transaction.

I am very sorry to the people who lost money on you. But UST was poorly designed, it was never going to work, so it failed. I am proposing some ideas to revive Luna and thus be able to revive the entire ecosystem. Today Luna is a shitcoin.

But in order to revive Luna, drastic measures have to be taken and I don’t know if the team is willing to take them.

The first and most important is to stop the creation of new Luna Every minute there are more and more Luna

Perhaps after terra fixes Luna, they can seek to compensate Ust holders. But that’s going to take time and I don’t think Ust holders are going to get back 100% of the money they had before UST lost peg.