Death Spiral II : The last proposal

Famous last words,etched forever in memory.

Famous last words. After reading through the latest proposal he put forth, it’s looking likely that it will be $LUNA/$UST that dies instead. I read it multiple times & still can’t believe how he thought that was a good idea. If i was a $LUNA/$UST holder that got rekt, it feels more like a slap in the face more than anything. The only ones that stood to win from that was them. Forget about killing 2 birds with 1 stone. This was intended to kill multiple with 1/4 of a stone. Below is an excerpt from the proposal, the last 2 points in bold is mindblowing.

Token Distribution

1,000,000,000 Luna tokens

25% — Community pool, controlled by staked governanc 1% — Essential Developers emergency allocation. No lockup 4% — Essential developers (1 year cliff, 4 year vesting thereafter, granted after launch traction) 35% — All bonded / unbonded Luna, minus TFL at “Pre-attack” snapshot For wallets with < 1M Luna: 1 year cliff, 2 year vesting thereafter For wallets with > 1M Luna: 1 year cliff, 4 year vesting thereafter 10% — Luna holders (staking derivatives included) at the “Launch” snapshot — 10% unlocked at genesis, 90% vested over 2 years thereafter 25% — UST holders at the “Launch” snapshot — 10% unlocked at genesis, rest vested over 2 years thereafter

Not sure how i would feel if i was a $LUNA / $UST holder that got rekt, seeing people who buy & hold either right now at these prices getting rewarded for it, even if it was a small %.

My interpretation of that is, trying to incentivize new money with the promise of an airdrop. Puts buy pressure for both assets. making it a little more palatable for those that got burned hard to exit at a relatively better price. 35% of total tokens, for leeches (maybe like me) getting rewarded for basically buying at shib like prices.

So existing holders will be made partly whole & best part is, this requires nothing from TFL’s end. Who knows, maybe a good time for insiders to exit stage left as well. Talk about a great deal. oooooh weee does that sound good.

The other point, looks like a gesture of goodwill to exclude the TFL wallet, but is it really? Though Do mentioned that he sold no LUNA / UST during the debacle, its just his word against yours. remember trust but verify? Also, it almost certain that even with this insane drawdown, its safe to assume that Do (& probably team?) personally is still wealthy. Of course, its not his personal responsibility to reimburse everyone that got rekt but also don’t fit something in there to make it seem like it’s some big sacrifice.

1 other thing to point out, the unfortunate part. is that the protocols building on terra are now, forgive my french, but fucked. everything revolved around LUNA/UST & if it goes to shit(even more than already is), they’ll have to rebuild elsewhere. but i’m already seeing a couple publicly reaching out (FTM/OSMOSIS) who will be more than happy to onboard them & im more than happy to use them if there’s value.

Finally, my uneducated opinion of what will happen:

  • Proposal completely backfires on him, because of the reasons i stated above.
  • Exisiting holders who baghold it down feels insulted & just dumps it all. accepting defeat.
  • Which then leads to even lower prices, too much for most to withstand.
  • Puke again
  • Trust completely decimated
  • A mass migration of protocols
  • Goblin town, ghost chain city
  • The end.

Question is, by whose hand did luna/ust die from?

Originally published at https://paragraph.xyz on May 17, 2022.

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chonk: a cat, specifically; a fat cat.

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the chonk

the chonk

chonk: a cat, specifically; a fat cat.