Absolute chaos and unfair, short-sighted game are being created. Public opinion passes to people who are not interested in long-term investments and prospects for the development of the project. Governance has turned into notes in a notebook. How can this chaos be structured?
The title of this post should be modified to “[Proposal] 8 Steps to Save Luna now - Economic Refactoring Proposal from industry professionals” in order to gain visibility.
The redemption capacity in effect was that tax but the governance decided to turn that off. It doesn’t fix anything. We need to fix the LUNA.
I think the algostable hadn’t failed.
Luna/ust can come back. If we keep the luna value, the ust value will come back.
So that I think there should be a total supply of luna to keep its value and burn all the income.
To release the luna supply or reduce the ust.
then, the ust peg can repeg after a certain time.
Also, the tax to outcome of ust and ust interest rate should be dynamic to deal with this.
This is how the currencies and central bank works.
This proposal looks interesting. Could you please provide backtested simulation on the data so we can see various effects? It seems like something workable on the high level. Thanks for the contributions.
UST algorithmic stablecoin has failed. But it was a fail since its conception. I recently have investigated about the IRON / TITAN case (the one which got shilled by Mark Cuban) and it was very similar to this one. An algorithmic stablecoin that died because of a bank run. Algorithmic stablecoins DON’T WORK. To this day, no one has succeeded yet. If a change is not made in UST, and it gets salvaged, UST will break again.
The LUNA ecosystem must be saved, and the UST stablecoin concept/mechanism must be reconsidered.
A possible solution would be to get it backed like USDC / BUSD do (I don’t mention USDT because they have too much comercial paper and treasury bills).
Sorry. You do not own much of anything left. All your value belongs to the UST holders if the network were to liquidate all holdings right now or even liquidated to create a new Terra v2. With that said, yes, LUNA should be taken care of.
The problem is in bad times, when you buy Luna, you don’t know how much you will be diluted by UST. So, slowdown the speed of UST Luna conversion is bad for both Luna holders and UST holders.
This proposal has many flaws, one of them is that UST is not backed by Luna market cap but the value of the entire Terra network. In tradfi terms, the blockchain is the asset, Luna and UST are both liabilities.
In tradfi, when a company goes default, they try a reorganization, usually through a debt equity swap, because they have priority of claim. After that they can attract new investors again thr company now has much less debt.
The problem with current Luna system is that the Luna/UST conversion does not happen at once. So, after say 1 billion UST is converted into Luna, Luna is still heavily indebted and nobody wants to buy an indebted coin because they will be diluted. So, the only solution is to let a lot UST convert into Luna at once or at fixed rate.
Please review/react to this: Proposed Recovery Plan (Proposal)
Liability is very soft way of saying a nuisance for entire crypto market. He should be banned and should be prosecuted.
In my opinion
- Mint to be stopped permanently
2.Burn all the Luna in liquidity from Exchanged
3.Buy Luna/ust with reserves as much as possible and burn.
4.Once peg is back to 1 add option to migrate UST to USDC onchain.
5.Change elasticity algorithm and work on a 1:1 usd backing.
6.Rework the UST algorithm peg and have it fall back on the USD reserves if the peg loses 0.001 or more
That Way we can reach back to 10-60 usd quickly, restore the peg and give them time to rework the UST fiasco.
It will be the biggest comeback in crypto and @dokwon regain respect and so does the Terra project
"UST market cap = $5000M
Luna market cap = $200M
UST fair price =0.04
UST actual price = 0.44
Best proposal mate, that’s the core of the problem. I just witnessed my 6 figure investment go to zero last month in a similar project, watching a proposal that tried to save the liability at the expense of the asset. It absolutely destroyed whatever value and trust left in the project. People who understand the fair price liquidated what’s left in the assets while the rest of the community lost more trying to re-peg a lost liability. It was a blockhole.
Without Luna there’s no UST, and anyone trying to save the liability now is simply trying to liquidate his losses at the highest price possible
“2.Burn all the Luna in liquidity from Exchanged”
I’d like to see someone trying to burn my Luna I bought from Exchanges!!!
- UST is the currency and debt.
- LUNA is the property.
- USDs used to purchase USTs must be held in a reserve directly and/or indirectly.
- At genesis the homes were first built and sold to buyers. Oct. 3, 2019 $150M from Arrington XRP Capital, Pantera Capital, Galaxy Digital and BlockTower Capital came into LUNA. UST was worth about $0. (Source: https://coincodex.com/).
- Some UST had to be minted from burning homes in order to provide currency to loan.
- Minting LUNA from UST builds a new home.
- Staking LUNA receives rent in UST.
- Collateralizing LUNA for USTs enables building a new home or other investments.
- Loaning UST collects interests in UST.
- At no point should LUNA inflate except when spending money to build new properties.
- LUNA minting UST pays taxes in UST. Drives value up of UST since it’s more desirable.
- UST minting LUNA pays taxes in LUNA. Drives value up of LUNA since it’s more desirable.
- Sending LUNA to LUNA pays fees in LUNA. A negligible deflationary fee.
- Sending UST to UST pays fees in UST. A negligible deflationary fee.
- Interests generated by LUNA should be paid out in UST.
- An oversupply of USTs invites LUNAs to buy more USTs to drive down their supply.
The UST was minted from LUNAs so they are a manifestation of the property’s value and the right to buy properties. However, without a functioning property we cannot recover the value. Let us try to the save the tokenomics. If nothing can be agreed then USTs basically have to be the new property owners in Terra v2 at genesis.
I could get behind this proposal and there’s a new one incorporates it that I like as well.
This copy of my reply on other proposals. I’m for a burn or otherwise lowering LUNA supply of some kind and no fork.
Terra has the chance to get through this probably more quickly than it first seems. Maybe not up to recent ATHs, but still thrive. There are now tens of thousands of new luna holders. People bringing volume and use to Terra chain, especially with some new tax or other tx burn mechanism ideas people have come up with… If it gets out that Terra chain plans to fix and continue onward and not fork and LUNA becomes deflationary, even if slowly deflationary, Terra and LUNA will probably go huge. Maybe even mainstream.
Bringing trust and value to the current chain and burning will reward validators. Believe me validators ARE getting crazy staking returns in LUNA right now, bring it value.
All the low price buys around the world are also propping up the price and even helpi g UST by buying LUNA. Have you seen the trading volume? Amazing. And all the free advertising. Save the current chain, bring value to current LUNA, setup a fund of some sort to cover UST holders over time. World community would love LUNA. Crypto community would too and assist.
Do it this way easier to bring in all these new LUNA holders to developers’ applications. There are a TON more wallet holders with no idea yet how useful LUNA is on chain, a campaign getting people in will bring value and trade volume to Terra dApps.
Ditching this opportunity by forking and airdrops etc gotta be kidding me. Just scared. Terra chain has a ton of value and a lot more to offer. As another said in another post welcome to further decetralization. This meltdown inflation might just be a blessing with so many new luna holders around the world. Show them a home.
Burn baby burn
We must all back this proposal, fast and publicly.
Agreed, I joined specifically for this proposal. Spread this around fast and to where it matters…where the holders will see it … together we can make this happen! GO GO GO! There is a sense of desperation here because it will be decided soon. What do you want for your investment?