I see that a lot of discussion has gone on, but the general consensus is that the proposal is sound. After the 3 major amendments I don’t think any other changes are necessary in terms of getting across an initial litepaper for the plan. Of course, minor changes and tweaks will always be happening along the way, largely dependent on how TFL decides to execute the specifics of the plan.
I think at this point internal discussion ad nauseum regarding the finer details probably won’t get us anywhere. We now need Do Kwon/LFG/TFL to come on and acknowledge/accept the plan. That’s when we can start moving forward.
That is the only realistic proposal. If it does turn out that there is to be reimbursement, the idea that we can simply ignore the price at which the UST sold was will be a non-starter. Not only is it grossly unfair but it would almost certainly lead to more abuse than working with the exchanges.
Many people got out while UST was still relatively high. If we follow the procedure outlined in this proposal, they can all simply buy UST at any price below their exit price and make a profit. That would surely lead to a much greater loss than some supposed theft by the exchanges. Fatman’s example, above, of an exchange employee writing a $50,000 check(!!) to a friend and it going unnoticed is ludicrous.
If UST holders are to be reimbursed then the whole process will be minutely audited. All that is necessary is to track each transaction to an exchange and then work with the exchange to confirm whether or not that UST was subsequently. It’s likely that in the vast majority of cases, the track of the UST, once it arrived at the exchange, will be very straightforward.
Please don’t do anything rash, Farzam. Please wait a few days for everything to play out. Hopefully you will get most of your life savings back if this plan is enacted. Try to get through the next few days. Take it one day at a time. We’re all in this together.
But speculators will buy UST just to sell for higher prices. I think redeemed USTs should be sold to open market for USDC and this USDC should be added to the treasury to compansate more people. This way there will not be any buy pressure from speculators as they will know redeemed USTs will be sold to the market. Also, people who sold their UST for 10 cents will have a chance ro buy back again at lower prices. So, the redemption process can take a while and people who already hold UST will get their USDC and their UST will be sold to market. Price will start to drop and panic sellers below 10-15 cents will have a chance to buy back.