Conversation

Do Kwon 🌕
@stablekwon
1/ For the extremely impatient lunatics on my timeline, a digestible explanation as to why the Luna burn is value additive to
@terra_money
(hint: it's not increasing UST marketcap):
Quote Tweet
fanta stix
@FantasSstix
·
Replying to @stablekwon
Commodore Do, take a few seconds to explain the impact on $luna please. Between the burn and the mint, when does impact on $luna could occur, in your opinion?
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Do Kwon 🌕
@stablekwon
2/ First, it creates *billions* in cashflows for luna stakers over the next 2 years and makes Luna a highly countercyclical asset. After col-5, all swap fees for burning Luna to Terra get paid out to Luna stakers spread out over 2 years.
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Do Kwon 🌕
@stablekwon
3/ The staking rewards are paid out in UST, which makes Luna pretty unique among PoS assets in paying out double digit (13% pa so far) in non-recursive assets This makes Luna *countercyclical* to market downturns - when Luna price goes down, staking returns go up linearly
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Do Kwon 🌕
@stablekwon
4/ Other staking assets don't have this property - in literally any other PoS system, price falls of the native staking asset also decreases the staking reward, as the basis is the same The community burn makes Luna a significantly more resilient asset to downturns
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Do Kwon 🌕
@stablekwon
5/ Second, it's important to observe what the community does with the new 4-5B in UST to be minted - obviously creating 5B UST in a vacuum doesn't really do anything I've hinted that: 1. The CP will protect against depeg risk of UST 2. Insurance 3. Aid multichain expansion
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Do Kwon 🌕
@stablekwon
6/ On depeg risk - I've grown quite tired of arguing with idiots on Twitter on whether UST can remain stable in bear. So soon I will propose creating multi billion dollar reserves in decentralized assets (BTC and others) in an attempt to save myself time. More to follow.
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Do Kwon 🌕
@stablekwon
Replying to
@stablekwon
9/ Some community pool $UST will be used to create deep liquidity for pools in multiple smart contract ecosystems, such that builders can access the leader in decentralized money on any chain
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Do Kwon 🌕
@stablekwon
11/ And lastly, Messrs cockroach, while it may be the great honor of your life to be chewed out on public Twitter by the Stablekwon, if I haven't done it yet its because you weren't noticeable In your FUD try harder - the moon in its time will certainly will give no quarter 🌕
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