I am an engineer and in my field we seek solutions that will work for most.
They can never be 100% fair to everyone, as this is practically impossible.
However, if a proposal is fair to most it will work over time and won’t screw most when applied.
So, for the Terra ecosystem:
Terra chain and ecosystem has proven itself to be probably the best project (team of projects really) by far!!
Very fast, stress tested, very cheap.
It’s a superb L1 (although it didn’t start like that) with a lot of dApps already build and a strong community!
Who has anything like that??
or XRP ?
or Doge ?
It pains me to see Terra gone.
More than the over 650k worth i (once had) there, about 385k on the 8th of May (day before attack), with avg Luna price ~$64.
For reference i had:
5351 Luna staked in Terra Station
122 Luna in Terra Station wallet
~ 15,000 UST in Anchor.
Several (most) of Terra Luna Alts, (Anc, Mir, Loop, VKR, Astro, Psi, Neb, SPEC, etc etc etc) Total worth? say about 6,000 UST.
If we want to save Terra, there are 2 ways to try:
Go for UST re-peg to $1 and try to make everything as it was before the attack.
As things are now, (huge de-peg) and trust in UST lost and billions lost, this is in my mind not possible.
It would require a huge amount of money, which people would use as exit liquidity (lost trust) which would de-peg again, entering a vile circle of more lost trust.
Also even if it could at some point rebuild a stable Luna-UST system, it would take years upon years.
Clearly (for me at least) this doesn’t work.
Go for saving Terra and airdropping LunaV2.
Clearly here the big Q is: how are we going to do that?
Snapshot before (so people who put money after, loose everything? ) or after? (so people who had paid $10,000 for Luna at $10 months ago and got 1,000L get ruined by the guy who bought $10 L at 0.001 and got 10,000L as a joke?)
I would propose:
Snapshot before for all people who had Luna, and give them 1:1 Luna V2
For their UST, redeem it at the price of L at the time of crash ( as i see it was around $64, but for ease of calculations, let’s use $60)
That is a fair value because that was the equivelant at the time.
So, for me, 15,000 UST / 60 UST/L = 250 L
What about people who put money during and after the crash?
They must also be preserved (and welcomed into Terra!), however allowing someone to have 100,000L because he bought $100 at 0.01 (perhaps as a joke, perhaps speculation, perhaps to defend the peg, it doesn’t matter) will simply practically eradicate the money and the worth of previous holders, since it will require much more LunaV2 at re-launch.
In my mind the best way to do this is with the same price as redeeming the UST before the attack (as if the attack hadn’t happened).
So, someone who bought $600 would get 10LunaV2 (although they may bought at 0.001 and so they have 600,000 Luna now).
I understand everyone wants the best deal for themselves, but the absolutely best for everyone can’t exist.
Now, let’s say there were (for ease of calculations) 240M Luna before the attack and $600M went into Terra during and after the attack, resulting in 10M more Luna to reflect that 600M at $60 / Luna (price before attack).
New total supply of Luna: 240+10 = 250 (M).
Let’s say new capital of Terra is $1B, the new price of Luna (LunaV2) will be $4.
If new capital is $1.25B it would be $5 / LunaV2.
I wouldn’t suggest going over $10, even if Terra had the money for it, because we will need preserve the new LunaV2 holders, by not giving them immediatelly the chance to exit and use the rest as liquidity.
Also, a lower price of LunaV2 would attract more people in the Ecosystem as they will remember the price was 60-80-120, so they will feel there is a lot of upside ( and actually there will be!)
Most of previous holders bought at prices much higher than the max $10 i propose (i bought at 17.6)
It would be very intersting to explore the possibility of a new stablecoin, a mirrored USDT or USDC, if that is technically possible ( i believe MIR can do that?)
So that would be the stablecoin of our Terra ecosystem.
On chain we would sell LunaV2 for that, if you’d like to move to CEX’s, you’d buy with mUSDT / mUSDC the LunaV2 and move it to e.g. Binance.
Lastly, i will say this again:
I understand everyone would like to gain more out of this situation for themselves.
But like that we will all loose.
I wrote this proposal with all my honesty and good intentions.
There is no easy way out of this, but if we can agree on something like the above, which doesn’t royally screw too many people, we will soon be on track!
Further technical details can always be discussed, but this is the core of my proposal.
Let’s not dillute ourselves in details right now.
Terra must survive! More dApps are coming, Alice card for the US was just a couple of months away, if not mistaken
Please vote if you agree and good luck to all!