Terra was too big to fail and it did. There’s no way to go back. Unless someone magically came up with $20 billion dollars. Plus going back to old way would be susceptible to de-pegping , whale attacks, rugs , etc etc.
Since the US gov’t is trying to regulate stablecoins as well as Central Bank Digital Currency , how about someone from TFL offering a UST as the facto US stablecoin in exchange for bailout & compliance? Obviously it wouldn’t be the entire amount… would have to be in low billions and using that to back the UST. This won’t save luna, but it would at least save the ecosystem and the peg. Of course, Luna has to be de-coupled from UST in order for this to work.
Also, this might be a perfect time for other big banks (ex. BlackRock, Citadel) to back UST. They’re tech driven companies. Whether or not they attacked this ecosystem, im sure they want to salvage the tech/community for their crypto plans going forward