Thread by @PersianCapital

Some interesting data on $UST and Terra's Anchor Protocol:

- There are 256K Anchor wallets
- The top 1000 Anchor wallets own 82% of all UST
- The poorest wallet in this top 1000 has 955K UST

This is great news for $UST / Anchor depositors.

Why? Let me explain..

1/

There's currently a proposal on the official Terra forum. The goal is to make people "whole" again, using Terra's $1,5B fund.

But there are different ways of doing this.

One way would be to return, say, 30 cents on each UST invested to every wallet.

2/

But this way, Terra's funds would disproportionately flow to rich whales who were holding most of the UST at the time of the depeg.

And you'd only be making everyone just 30% whole. In reality, most people would still feel bitter.

So let's explore the other way..

3/

The second way is to prioritize smaller wallets. People who had a couple thousand or more of UST deposited in Anchor.

If Terra just focussed on the "poorest" 99.6% of wallets, then they could make this gigantic group 100% whole.

Yes, you read that right!

4/

I repeat: By prioritizing the bottom 99.6%, Terra could literally afford to return every dollar that was invested by the poorest 99.6%

How come?

Well, the VERY vast majority of UST is held by regular people in smaller wallets (non b/millionaires).

This is potent #hopium.

5/

The benefit of prioritizing smaller wallets:

- WAY more people would be made 100% whole
- Good for community sentiment
- It's easier to manage the remaining group of rich whales after the big group is whole
- One could argue it's fairer: poor people need money the most

6/

A little side-story:

Something similar happened after Madoff's Ponzi collapsed. In the end, Madoff's investors received 70 cents on the dollar.

However, smaller investors were prioritized; Investors with $1.7 million or less received EVERYTHING BACK.

7/

So most of Madoff's investors were made completely whole again, except for a few ultrarich/hedge & pension funds, who received back "only" 70 cents on the dollar.

All thanks due to a functioning judicial system.

In DeFi, investors might not be as lucky.

But I digress

7/

Please note: I've done my best to read and understand the proposal the best I could. I cannot guarantee that I got everything correct. Confession: I'm still somewhat new to DeFi.

If you have any thoughts, feel free to comment and kindly keep things civil 🙏🏽 .

8/

Forum members strongly support this proposal. And so do I. I hope it gets implemented.

So if you are one of the 200 IQ Terra developers with close ties to the leadership, kindly tell @stablekwon and others to go forward with this.

9/

@stablekwon Finally: Here's the link to the proposal on the official Terra forum, authored by a person who goes by the name of "Fatman".

Shoutout to Fatman. You did a great job researching and writing it!

10/
agora.terra.money/t/proposal-tie…

If you read until here, you are a real one 🙏🏽!

To spread the knowledge, you could like or retweet the first tweet:

https://twitter.com/PersianCapital/status/1525226153304199168