- Fix the generation over-necessary of Luna for burning UST
- Fork Luna at the point before of the hyper-inflation (Luna2)
- Have UST linked to Luna2
- Introduce some mechanisms to collateralize UST
Everybody’s money is important, but not everybody’s intentions is/was the same. UST was supposed to be a stable currency and people who bought UST wanted to stay safe.
People who bought Luna wanted to earn with the appreciation (often) without understanding the dynamics. For this reason I do believe the UST’s value has to be safe-guarded “more” than Luna’s. That said we have to find a way that can somehow compensate Luna’s holders too.
When ETH was born, it was as a result of the fork of ETC following an unexpected event. which is what is happening today. So this is something that we can take inspiration from.
UST supply will be the current one ~11.2b, while Luna2 supply will be as it was before the deflation ~220m. Thus, the supply of Luna2 that once sustained 18b UST should in theory sustain 11.2b ust.
If UST is collateralized by Luna2, then, we have found out that Luna cannot be collateralized by “faith” only. So we need something else and preserve it.
Also, increasing the burning rate of ust and thus the inflation of Luna is also not a good idea because no matter how fast you can do it, it will be still anticipated in the exchangers.
I don’t have a solution for this, but I think we need to put in place a system where in case of attacks, Luna holders are repaid in foreign currency to hold Luna and instead of increasing the inflation rate, we should decrease it, even stopping it. This measure should go in place whenever an attack comes up.
In this way the price can be pushed down in the exchangers, but the market will not be flooded by bad-debt and thus the cash reserves will be preserved. (see what Russia did with rubles).
At the same time, people can be assured that there are enough reserves to pay, it’s just a matter of time, while attackers will be discouraged from attacking.
Luna1 can be seen as a bad-debt that can be converted at a fixed price and will be paid back slowly in time.