This proposal preserves the remaining goodwill of the ecosystem while pivoting to a more collateralized, multi-chain stable coin. The intent is to provide the time, security, and incentives to make such a transition. This proposal is for a minimum of one snapshot to be taken in order to organize and incentivize the transition toward the most equitable path forward, without having to halt the current chain. It assumes a fork, haircut/workout to existing holders, and change to UST mechanics to be more collateralized will be specified in future proposals.
Luna has built tremendous value that can be repurposed for better. We need to halt speculation, allow the chain to continue to run, while creating the time for the LFG, TFL, developers, community, and others to work out the right path forward. Taking a snapshot now [Insert Date] (or earlier back to 05/07 if possible) defines who is currently staking Luna, holding Luna, and existing UST. The team will return in time to propose the haircut to such owners required as of the snapshot date to move Luna forward in the proposed direction. Owners will receive an airdrop that is adjusted for the proposed haircut / losses. While the existing chain continues to run, those who buy and stake Luna across friendly validators in the coming weeks will be rewarded with a smaller airdrop after the fork.
A Yes vote will agree that a snapshot be taken as early as possible to define Luna stakers, holders, and UST holders. This snapshot provides the baseline for how each party (stakers and holders) will take losses and receive a redemption rate / airdrop in the new Luna, USTc(collateralized) after the chain is forked. Liquidity Pool providers will be considered holders. Details of such workout will come in a future proposal. This proposal approves the snapshot and desired future intent of such a snapshot.
Example future intent:
LFG / Leadership motivates multi chain- Will attempt to work with the Cosmos Ecosystem, AVAX, SOL, othe L1s, Dapps, etc. together with investors to create a treasury of L1’s committed capital. In addition to capital, they commit to secure bridging of assets (IBC or other) by a specified date. They will receive rights to new Luna at a fixed rate, redeemable in 3-5 years for their contributed capital.
Multi Chain Collateral Mechanism: Users will be able swap new Luna, BTC, ETH, other L1s, PAXG, USDC, and other select assets for USTc. When USTc is created, new Luna is burned. The proportion of collateral is TBD and can be less with higher market cap and more chains participating in its acceptance. USTc will start out 100% collateralized and change in accordance with safety / security / adoption.
Incentives: Owners will be given adjusted value based on the snapshot through a swap redemption and / or airdrop. Those who buy and stake Luna after the snapshot to secure the chain until transition will receive a smaller airdrop of new Luna for doing so. This will protect the chain from being taken over in the interim.