Twitter user @PerisnCapital, suggested an improvement to the state of the UST coin. The proposal has the backing of many big names in the crypto industry, including Vitalik Buterin, Justin Sun, and CZ.
The proposal begins with some market stats:
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 USTThis is great news for $UST / Anchor depositors.
Why? Let me explain..
1/
— Amin (@eftegarie) May 13, 2022
“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….”
The proposal is detailed in a threaded tweet. A proposal is currently on the Terra forum, according to PerianCapital. Terra’s $1,5B funds are intended to make people “whole” again. It can be done in many ways. Every wallet could be given, say, 30 cents for each UST invested.
This would, however, cause Terra’s funds to flow in a disproportionate manner to rich whales that already held a large percentage of the UST. This would make everyone just 30% whole. People would still feel disappointed.
To prioritize smaller wallets is another way. UST holders with a couple thousand or more in Anchor. Terra would be able to make this giant group 100% whole if they focused on the “poorest” 99.6% of wallets.
This last part has attracted many influencers. Vitalik Buterin tweeted:
The obvious precedent is FDIC insurance (up to $250k per person)
An interesting unrelated one is Singapore employment law. Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier.
IMO things like this are good hybrid formulas. pic.twitter.com/25XkfE8UVc
— vitalik.eth (@VitalikButerin) May 14, 2022
“Strongly support this. Coordinated sympathy and relief for the average UST smallholder who got told something dumb about “20% interest rates on the US dollar” by an influencer, personal responsibility, and SFYL for the wealthy.”
In addition, PersianCapitall explains that Terra could return every dollar invested by the poorest 99.6% simply because the vast majority of UST is held by ordinary people with smaller wallets.
It is beneficial to prioritize smaller wallets since it will make more people 100% whole and improve the sentiment of the community. Furthermore, it is easier to manage the remaining group after the big group is complete. Poor people need money more than anyone else, so it’s fair.
CZ supports the proposal by tweeting:
4/ Now the important part.
To lead by example on PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate the retails users first, Binance last, if ever.
Binance (after a 5 min discussion) fully support this proposal. 👇https://t.co/QnMx8aZ09A
— CZ 🔶 Binance (@cz_binance) May 16, 2022
“To lead by example on PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate the retail users first, Binance last, if ever. Binance (after a 5 min discussion) fully supports this proposal.”
Another famous supporter is Justin Sun, that says:
Fully support this proposal. I sympathize with all in this unforeseen crisis. I would like to commit $10 million USDD to the recovery of the bottom 236k UST holders. I believe this will benefit the ones affected the most and show our unity! Details to be announced soon! https://t.co/DuKbYlJDlU
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 16, 2022
“Fully support this proposal. I sympathize with all in this unforeseen crisis. I would like to commit $10 million USDD to the recovery of the bottom 236k UST holders. I believe this will benefit the ones affected the most and show our unity! Details to be announced soon!”
At the end of the thread, there is a link to the Terra forum for supporting the proposal. You can see it here.
