Conversation

The reason for establishing this reserve could be thought of as a good idea because stability is often psychological and self-reinforcing. If people are worried about the UST peg, it is harder to maintain it because in turbulent times people will try to ”escape to safety”.

Erica Wall X

@ercwl

Things that are perceived as having the strongest peg also see much less stress testing of their peg. That’s why a 3B safety net can yield much more than 3B in cost savings, because of the psychological impact that leads to way less stress tests in perpetuity.

Erica Wall X

@ercwl

But, using these kind of one-off solutions to build a reserve is a huge miss because it still undermines the belief in the system’s sustainability if you leverage ICO funds to build it. It inspires much greater confidence if you sustainably built a reserve from protocol fees.

TL;DR

is centralized and funded by ICO money which is inherently unsustainable, violating the two most important tenets of a decentralized algostable.

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I didn’t see

clarifying anywhere that the reserve was built using ICO money, and he gets super defensive if you want to write a thread about where the money came from that’s longer than a tweet.

Quote Tweet

· Mar 28

Replying to @ercwl and @adam3us

Did you replace my explanation with a literal stream of consciousness and call it better? Useless iwo

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Hey Eric, couple of clarifications: First, the reserve is not funded through an initial coin offering, unless you mean the luna we are holding is an “ICO” Terra only raised 32M or so from funds before network launch, and don’t think this money made a meaningful contribution

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Second, I am not sure you know where the right places to look for content in the Terra community, but tweet replies to adam beck is not usually where you can get the best information - hope you agree. Thesse are better flipsidecrypto.xyz/terra/lfg flipsidecrypto.xyz/terra/lfg-netw

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