After the latest announcement a few hours ago that the LFG has no money left ( spent almost the entire 3B reserve) wlawyer is the best proposal so far, as it will (potentially) bring 1.5B USD from investors to compensate the UST pre-attack holders.
I support it strongly.
You are still more than welcome to read the post I have shared a few days ago before this proposal came to life.
Before I start, I’ll just say that I basically agree with FatMan’s proposal as the first goal in a crisis like this should be to save as many people as possible.
I am one of these people that you call “a Whale”. A whale who lost everything. I had 1.5M UST locked in Anchor so I am probably amongst those 1000 top addressees that might not see all, or any, of their money back in case of a repayment. I also had 5500 Luna which I bought when the price was around $35 many months ago, and It’s still staked up util now.
After the attack, I sold 500k UST and got 250K USDC as the peg was $0.5. I Then swapped another 500K UST for Luna (at $40) , and I kept the last 500K in UST until today.
In total, I managed to get 250K back, but these funds will go towards my taxes, and it’s not even all the taxes I need to pay, so I’m pretty much also screwed with my taxes.
Before I share my thoughts and points, let me tell you a little about myself. I am married and have 4 kids. I’ve been in Crypto since early 2017. I closed my business 2.5 years ago and I’ve been only doing crypto since then. 16 hours a day, learning and digging like many of you. A real full-time job.
A few years ago I almost had to sell our family home but crypto saved me.
I started with 50K and decided to go all in on projects I believed in. It worked well, even though I also lost a lot along my way up.
I saw Terra Luna as a real gem in the space, and the idea of a decentralized stable coins looked like the right place to store my wealth in.
I had almost my entire capital staked with Anchor and I lived off the interest, which allowed me to continue and get involved in crypto. This was probably the biggest mistake of my life, and even that the say: “don’t put all eggs in the same basket” was known to me, I did wrong and trusted the system while the daily interest dazzled my eyes.
A few points if I may:
(Edited): The first point I had was to only compensate UST holders and not Luna holders for the reason that UST was the core system and had a promised ratio of 1:1 while Luna was a token that can see ups and downs (And remember that I was a Luna holder as well).
But after reading over 60 replies so far you have convinced me that both UST and Luna holders should be compensated. It means less for everyone, but indeed all of us, the holders who supported this ecosystem, deserve their share in case of a compensation.
There should only be a snapshot prior the attack. With Do Kwon’s proposal, those 400M that he offer to split amongst the ones who “held” till the end and were there when the system restarted, only means that for example people who bought UST on Binance for $0.30, then sent it to their wallet before Terra halted, will get a 3X over their money. This is not acceptable.
The holders that sold during the attack shouldn’t be punished for trying and save their life savings, no matter whether they are poor or whales. The compensation should be for all holders, that had a skin in the game before the attack. Whatever happened after that should be ignored and all speculators should take the responsibility for the risky game they played. It has nothing to do with us, the community!
As you can see, even a “whale” can become poor in one day. Don’t assume all whales on Anchor have a fortune back home.
Remember that most of the UST holders did sell during the attack trying to save our money. If we compensate every small account with 100% they will actually make a profit as they’ve already rescued some of their funds. For example in my case, I managed to save only 250K out of my 1.5M and the rest is dust. If I would get my 1.5M back. I made an extra 250K profit and this is not acceptable either.
I don’t have enough knowledge regarding the abilities to see who withdrew what and when, who sold the UST they’ve withdrew, and who just held it in their wallet till they’ve decided to sell however we will need to find a way to do this so we can deduct those funds accordingly. Any suggestions on this point will be appreciated.
And lastly, if you’re in a dangerous place right now and you’ve lost everything you had, just remember that money comes and money goes. There is never a real zero, even if it looks like a zero, take a closer look and you will see 0.0001. From this disaster you can only grow.