Charge a 5% tax for every Luna transaction (except transfers), make the contract buy UST automatically using all revenues from the 5% tax, until the problem is solved. Potential daily revenue from this solution is around 250m (half of past 24h daily volume according to CMC times 5%). The key goal here is to get UST back to $1
Save Terra ecosystem and ppl’s money (and would not hurt to get some donation from this, either from the project or ppl whose money is saved)
There are 2 main things needed to pull this off:
- Project must have control over the smart contract (ownership). Change buy and sell luna taxes by adding 5% to every buy and sell transaction (only those, not to transfers). The contract should be changed to automatically buy UST from the 5% tax. Approximately half of the transactions would be selling luna for ust, that is why the estimated impact is calculated over approximately half of the 24h volume. Selling taxes should be included because not every sell transaction will be luna to ust (some revenue would be lost if only buy taxes are considered). Finally, selling and buying taxes will take out UST from circulation temporarily (those UST will be owned by the project), which will help reduce UST selling pressure.
People should not care about 5% tax, it is too low to affect huge possible gains from buying Luna after executing this solution. Why 5% tax? Just seems low enough to not decentivize transactions, and large enough to solve the problem in a matter of days.
- The project must ask the centralized exchanges to cancel every Luna transaction, except withdrawals (this is not needed in the long term, just short term for this solution to be faster and to channel trades to decentralized exchanges). Centralized exchanges would be incentivized to do this from the luna they own (if any, if not, hopefully they will just cooperate). This is needed because it is very easy to charge taxes in decentralized exchanges (done automatically through the contract), but it is not easy for centralized exchanges (needs to be implemented and can take time).
In 10 days the project should get more revenue than the reserves it had 6 days ago.
Hopefully this proposal is taken under consideration.
The Crypto Magician