TLDR: Everyone that still holds LUNA and UST on the old Terra Classic will get full repayment via the mechanism below (including whales) bringing back global confidence into the Classic Terra Network, both Classic LUNA and UST are brought back to life.
Considering the plan to launch a new chain after block 7790000 as proposed by Do and combining various ideas that many people have already put forward for the old Terra network in specific those from Nikola-HydraChain with the proposal Put the CAP of UST at 20B UST and the proposals of @S986123, and @HelloThere under the general assumption as pointed out by S986123, that UST is a debt-like instrument, given it was promoted and sold as “safe”, that 1 UST would always be equal to 1 dollar.
First of all everyone should be voting YES on the proposal made by Hellothere, the proposal will start creating money on the Terra classic chain with immediate effect and will bring on investors, if you have LUNC tokens please vote here or visit Terra Station as to start burning LUNC right away.
The @FatMan 's proposal was a good idea, however there are no funds left, the LFG has only $91M and they plan to use those 91M in a way that has not been disclosed, they will justify how these funds will be used so we are left to solve this mess for ourselves.
Anchor was marketed as a safe savings account and is what really made Terra grow, now that they plan to fork we still need to recover our funds from this debacle the world is watching this experiment as per the earlier comments of government officials worldwide, we need to recover the money.
THIS IS A COMPREHENSIVE SOLUTION THAT MAKES WHOLE EVERYONE ON THE NETWORK INCLUDING LARGER INSTITUTIONAL INVESTORS (which in turn service smaller investors).
If we can make all UST holders whole, this will improve sentiment and rebuild trust which will be crucial for any future Terra projects that we may have.
The revised proposal is as follows:
Let the current version of UST to continue to trade including Anchor with the caps proposed by Nikola-HydraChain, there is still value as seen on the current open market price, even if UST is not stable allot of users will use Anchor to stake their volatile UST, I propose to change the UST name to USTvol (as UST Volatile) bringing the USTvol and Luna prices back up, also as proposed restrict withdrawals for two weeks when invested in anchor. This would not had happened if this restriction has been in place at the moment of de-peg.
USTvol should continue to trade on the open market, and Anchor should continue to exist as is and with different redemption periods and changing rewards, paying interest (possibly finding a way to pay a larger percentage to attract more AUM) despite USTvol not being stable, the mere fact that anchor exists in chain should allow renewed interest in the USTvol token. There is currently value on this chain as it is, evidenced by the current USTvol market value of 0.15USD and the recent LUNA bounce.
Burn what the UST hold by the LFG and other terra instances to create liquidity.
Repayment of the locked UST for everyone affected can be paid with existing swap fees. Swap fees totaled $1.2B - $1.3B dollars, (for details on LUNA genomics, see: https://twitter.com/pedroexplore1/status/1524216974611517443?s=20&t=8UGosjeZHobrMDw-jm7f6Q 1).
Give incentives in the form of interest to Whales while holding to be repaid.
We can bring in whales if we have a deflationary USTVol coin that has anchor on it and that require these investors to be vested for a long period, this will in turn increase the price of USTVol
We should set an example to the financial system, the system should be made whole again.
This is just a draft and seems we are left alone holding the bag please comment below!