What happened….Where was trust broken…Could this have been avoided…Any Ideas?
// First of all, this was a liquidity issue…in hindsight…too much growth too fast…the Lunatics needed to have a more proactive sense of short-side liquidity reserves. We were close with regards to on-chain liquidation pools (re: Kujira); but outside liquidity on exchanges was no match…again, in hindsight, it seems like Lunatics could have welcomed more bears into the forest..too much leverage..invited outsiders..yet I wonder…the recent deals around BTC obviously were a more direct catalyst…but I just don’t know where to begin in my thoughts…was it all really due to migration of curve.fi pools opening for an attack…or just domino effect of some outsiders speculation…anyways…this daily candle chart is just one to always remember…don’t get too close…don’t marry your bags….diversify…take profits when you can…at least limit your personal risk…pay attention to macro trends…pay attention to seasonal trends…I didn’t take much profit on this chart because I believed the project would exist for decades to come…little did I know…the death spiral of UST was catalyzed…reserves could not stop the spiral…Luna stakers have been diluted by xxxxxx% to a total supply of about 6.91 Trillion LUNAs and uhhh yeah…that’s sorta the antithesis of the deflationary value proposition that attracted most investors to the Terra blockchain….the tokenomics have become meme-able —
— since the crash over the weekend, first a proposal for increasing mint parameters passed–trying to help save the UST peg–but this exacerbated the LUNA minting to such a point that validators intervened and halted block production–it has since restarted and some centralized exchanges reacted with similar pauses a few steps behind the validators– but questions still remain…
–many Lunatics wonder what might remain of any BTC reserves that were purchased over recent months…were these entirely deployed…or hopefully some have been retained to create incentives behind some type of diminished reboot??
–some Lunatics also wonder if the best route is to snapshot and fork the chain into more generic Layer1 blockchain with a less ambitious goal of stablecoin creation..but perhaps still focusing on decentralized blockchain services that help to bank the unbanked with self-banking and community education resources
–many fully functioning protocol teams are more urgently looking for solutions with regards to their own projects…many projects chose terra for tokenomics, but some may have more robust usages…I wish these teams the best as they take what they have learned in this ecosystem and iterate upon it..
–Many NFT projects have huge communities that likewise might choose to migrate…I remain optimistic that Terra has enough infrastructure to perhaps incentivize NFT communities to deflate the token mess that we have encountered, but more thought is needed…I will treasure my Terra NFT collection immensely…and I will continue to share my art with pride, whether it can be resold on the Terra blockchain, or perhaps elsewhere!
–For now I need to keep moving on and moving forward…money can always be made back again…but I have my deepest consolation and sympathy for those who lost life changing gains or more this year! I wish it were different.. I didn’t see this coming… I was overly optimistic in almost 99% of my views, and I will meditate more on my desires so that I can better temper my expectations as I move forward.
–I will continue to manage an onchain Terra Station wallet and I believe that some value will be derived from the suite of user friendly applications that exist. I hope more will even be built on the chain….hmmmm ideas …ideas…wen Terra Chess 😉
–TLDR; I wouldn’t try to buy any LUNA unless you like trading SHIBINU … we need governance proposals to pass and be implemented on-chain before we can really project a future for the Terra blockchain..I’m sticking around to participate in those votes…but I expect many project teams and protocols to announce their migrations to more profitable blockchains in the coming weeks and months.
— I wish you all the best of luck..
-Jeff from IT