How much you have lost is irrelevant to how much you should recover. If you get a margin loan 10x leverage to buy 100 USD worth of asset. If the asset goes to 50 suddenly, the debtor, will recover 50 and you will recover 0. If the asset does 10x before liquidation, you make 900 USD, which is 9000% and debtor only earns some interest.
After talking to some devs and validators, I understood that while they think my proposal is reasonable, but they all hold a lot diluted Luna. Which is why they propose to fork and compensate old Luna holders. So, in addition to my proposal, I think we should rebuild a community pool to compensate developers,
I think ust-> luna minting has to be pegged to a% of luna Market Cap (luna tokens x luna price), making the ratio a variable. If Market Cap is low → fewer ust can exit per block; if Market Cap is high more ust can exit. This way the variable becomes not price but time(preference), reflected in the ust usd price!
Well if a company has 1 billion USD worth of asset and has 10 billion USD of debt, nobody will want to invest in this company. Even if you say, this 10 billion USD will be paid in installments, still nobody would want to invest, because it will go bankrupt eventually. The only way out is to reduce the debt, e.g. if you let the debtors control 95% equity in the company and write off the debt, then it can attract new investors, because it is now a debt free company.
It depends what kind of duration/maturity the debt has. As long as the company has positive equity and can pay the contractual debt agreements, it should be fine. Luna has a positive Market cap it is not 0 (yet), it even has positive reserves. f.i. A conversion of 100 ust per block would be no problem right now and in the future - the only question is how much ust the ecosystem can absorb…
The beauty of the luna ecosystem is that it has no debt - it has only assets (at max eveything is worth 0)
Well UST is the debt at the moment. I think the point if you buy Luna now, you know you will be diluted by UST eventually, you don’t know how mich dilution there will be. That is why Luna will have very little fundamental value, and people don’t want to invest in it. A big reason of the crash was that there is no demand for Luna. When Luna market cap became 50 million USD and people are not buying because they thought their share will be diluted away.