Can’t Terra incentivize the buying up UST by temporarily (when say UST is >.99) auto”staking” that UST, in essence the UST would rapidly reward the staker as long as they hold it, with Luna which will be locked up in staking just like regular Luna. The more below peg the more rapid the reward. This would come from the new Luna being minted by the UST price being below peg and can even be added to by the community pool. This would rapidly increase demand for UST so they can get the Luna rewards. Because as I understand it UST is below peg bc of an oversupply of it(people selling) right? So people, in search of really great Luna rewards would rapidly buy up UST until it is closer to peg and the Luna they get for doing that would be staked with normal 21 day unlock period. This increases the total % of Luna staked which is great for overall stability and keeps people in the Terra ecosystem. You could ask why would people want rapid Luna rewards for holding and buying UST when the market crashes? Well everyone wants a stable stablecoin when the market crashes right? Why not have a stablecoin that gets you staking rewards too? So USDT, DAI, USDC users can flock to UST in a crash for rapid Luna rewards or at the least a very stable stablecoin. And it basically incentivizes people that are true believers and here for the long term to “help” UST survive. More % of Luna gets staked (which can’t be sold right away such as in a market crash) and more demand for UST helps it maintain peg and the closer the peg is to $1 the more confidence people have in the ecosystem growing. The more believers the easier it is to maintain the peg. Does this makes sense or no? Having a go at trying to contribute.
Ok , so forget that, we can just fund these rewards with community spend proposals . Hold Luna/USDT , and Luna/USDC and get luna mir and anc rewards , all funded from respective community spend pools. This would allow the community spend to help support liquidity for huge demand and contractions. Rather than how it’s currently handled with the stability reserve. This wouldnt replace the stability reserve but it could take off a bit of the burden. Would be interested to hear TFLs take on this. Could roll this out quickly and might help the current pressure.