[Let them Fork] Proposal for Terra Classic/UST - 100% of users guaranteed repayment

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!

15 Likes

Sound good.
Rebuilt trust is the most valuable thing Terra can do to push LUNA forward.’

No to this proposal since you change topic to LET THEM FOLK hell no!

4 Likes

The world is watching, we should set an example to the worldwide financial system.

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Ladies and Gentleman

in my humble opinion those two statements are the upmost important aspects of whole TERRA disaster
quote:

Rebuilt trust is the most valuable thing Terra can do to push LUNA forward.

The world is watching, we should set an example to the worldwide financial system.
end quote,

if Mr. Do does’t understand this and acts without listening to advice of very experienced posters here with knowledge in economics, finance and blockchain finance then,
we are heading into final stage of implosion of TERRA and shrapnels will reach whole crypto sphere
for years to come !
TERRA must be fixed no forks otherwise
it is now the text book example of problem - reaction - solution tactics of money mafia
authorities who staged this attach (the problem) now voicing their stand on it (reaction) will manage stable coins regulation (the solution)
its very simple, and it works for very long time unfortunately centuries

so Mr. Do needs to stand up to it and listen to those who share their experience and vast knowledge on "how to " in economics and defi
my 2 cents
thank you

disclaimer:
I’m at loss of UST to some degree, managed to swap at loss for USDC before ground impact

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@humanreadable, exactly, this is not just incumbent to the TERRA community, but to the whole crypto community, we are only one and must act supporting each other!

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As mentioned in other thread,
I think the major problem now is the LFG reserve, all those proposals rely on the LFG reserve since no exogenous capital want to bail out TERRA now. Do and LFG still has no response on the reserve problem, it has been 3 days after crisis happen, now even binance CZ is questioning about this, he think the reserve (especially BTC part) should be used to buy UST back, but it seems not happen.

And after the refund (if it really happens), LFG will has literally zero fund in pocket, they cannot start a new project. So how to get these kind of refund proposal being approved is another problem, I think highly unlikely the refund will happen

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What about the shared addresses like the one in Binance? It will be hard for them to reconstruct how much it belongs to any account share

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the UST number can be matched, for example,

you sent 50k UST from your terra wallet to FTX or Binance(both exchange use shared address for TERRA chain), so you have an on-chain prove that you sent 50k UST to one exchange, then you can provide the sell history of these 50k UST in your FTX/Binance account, the key point is the transfer amount and sell amount need to be matched

Now LUNA is like a dying person. Your priority is to promote more people to buy it and resurrect it first, instead of making a special decision to please those who have nothing. You can’t resurrect them, and they will never get the money. ! And the person who holds LUNA now and the person who is about to buy LUNA is your father, and you have to please them 100%

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Lucassvdws you are right, in theory, in practical terms who is going to assess millions of transactions?
It is practically impossible that all of us check the transaction send it to someone to assess and refund.

BTW I am interested in LUNA and not UST

  1. LUNA is TERRA’s equity.
  2. LUNA holder is TERRA’s shareholder.
  3. UST is TERRA’s debt
  4. In law if TERRA go bankrupt, they need to clean the debt first and share the remaining (if any) to shareholders

Therefore I propose to destroy all UST and return to LUNA at 1B tokens.

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This sounds good. Losing yield for a payback as close to initial deposit sounds fair and would also help build back trust for the ecosystem.

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what about people that was holding UST on Binance before the De-peg, that one that never sold will be they eligible?

If this is the case, which it could, a proposed solution via swap fees may be implemented. It may take more time but in the end everyone could get paid back via the aforementioned mechanism.

Blockquote
what about people that was holding UST on Binance before the De-peg, that one that never sold will be they eligible?

Exchanges holding balance at the time of the depeg will be paid via the mechanism described, such users will get it back as discussed.

In reality the solution for LUNA as proposed by HelloThere will at least start to solve the valuation of the coin.

I like a lot of the idea but having a snapshot for UST is ridiculous. Why should someone who hedged their bets and sold at 50 cents get vastly more than someone with the same amount of UST who never sold?

They should use the current chain and the people who sold at 50cent should also buy back at 50 cent to be able to receive the funds

It’s hard to know exactly when they sold if it was done on a CEX. That would take a lot of coordination and effort.

People hedged their bets. At this point I wish I sold for 50 cents.

Perhaps if people sold at 50 cents they get half of someone who never sold… at most

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I agree with @SaveUs any ideas?

How can we calculate profits from people that already exchanged their UST at 50% loss for instance.

Please comment below

Opportunity of the lifetime presenting itself here.

1 Like