Thread by @TheCryptoCents

My proposal for a sensible way to move forward for the @terra_money community and #LUNATICs.

$LUNA $UST $ANC #terra

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1/ I think we can quite confidently say at this point that the $UST Peg isn't going to be restored to $1. We entered the tail end of the death spiral in which $LUNA is being minted at an increasingly exponential pace and approaching zero and being delisted from CEXs.

2/ That being said, there is still tremendous value in the $LUNA ecosystem (the infrastructure and the community of #LUNATics and its users) that should be salvaged in order to rebuild what we started. Improving upon what we learned and making it better.

3/ This infrastructure includes existing protocols of the terra ecosystem like:

@pylon_protocol @ApolloDAO @prism_protocol @angelprotocol @TeamKujira @WhiteWhaleTerra @astroport_fi @mars_protocol @luart_io @loop_finance @anchor_protocol, @anchor_protocol, and the list go on.

4/ And of course the #terra community and passionate #LUNATics that's been here through the thick and thin represent intangible value for the ecosystem. Without the community of users, $LUNA would have been nothing.

5/ Proposal is to convert existing $UST into $LUNA. Take a snapshot of pre-attack on May 9th and post-attack; then fork or reset the network.

New tokens will be airdropped to users based on snapshots taken with a much larger distribution going to the holders prior to attack.

6/ Pre-attack snapshot holders will include all $LUNA holders including stakers, $bLUNA, liquid stakers like $yLUNA, $pLUNA, etc.

They will be given ~90% of the allocated distribution of new airdropped tokens, with the remaining amount going to post-attack snapshot.

7/ I fully recognize that in this situation, you're not going to be able to make everyone happy; if anyone is actually happy at all. But I believe it's the best way forward for the ecosystem and community.

Let me elaborate.

8/ Theoretically, $UST holders are debt holders and should take precedent over equity holders. That was my position until yesterday when it was clear that the peg was not going to be restored.

9/ In this situation, it's better to convert debt into equity. Otherwise, both $LUNA and $UST will be going to zero anyways.

10/ Next, it is incredibly important that the distribution of newly airdropped tokens leans heavily towards pre-attack holders because they're ultimately the #terra community and the #LUNATics.

11/ They stuck around as long-term investors, and put their blood sweat, and tears into building this ecosystem. Many tried to hold the line and at the end of the day became exit liquidity for mercenary capital taking advantage of Anchor Earn's subsided yields.

12/ All of these community members have since been either liquidated on Anchor or inflated into oblivion retaining 0.01% of what they had a week ago; essentially liquidated as well.

13/ And arguably more important is that they are the $LUNA community and #LUNATics that must be preserved. They're the builders, educators, content creators, and users of the #terra ecosystem.

It's important we give them a stake, many of them can't otherwise even buy back.

14/ If the distribution of new airdropped tokens is too heavily distributed to post-attack snapshot holders.

The plethora of $100 YOLO retail investors/traders with 10,000 $LUNA are just going to dump the token, make a windfall, and be gone the next day.

15/ And we would have lost the community and forfeited one of our biggest advantages as an ecosystem. Meanwhile hindering our ability to of rebuilding the @terra_money ecosystem from where we left off.

16/ People say #terra, $LUNA, and $UST have lost trust and credibility. Maybe so but trust can be regained with time if we come back with an improved product. Fixing past failings and building an even more vibrant ecosystem.

17/ There is certainly the talent in the community to accomplish this. The question is can we preserve it and move forward together as a community.

Please help retweet to get it to as many people as possible and tag anyone you deem necessary.

$LUNA $UST @terra_money