Proposal: Fair distribution of Terra's Fork Distribution - Anchor Portion

So guys, In order to ensure fair distribution of the Terra fork I have started this thread.

Do Kwon has finalized the divisions for the Terra community here:

Terra Ecosystem Revival Plan 2 [UPDATED AND FINAL] - Governance & Proposals - Terra Research Forum

in Particular, he references staked luna holders and aUST holders.

TLDR;
A snapshot will be taken for Luna distribution prior to the hack, the snapshot is

  • “Pre-attack” snapshot to be taken at at Terra Classic block 7544910 (2022.05.07 23:00:04+08:00)

The payments to be paid out for us Anchor users are:

  • Pre-attack LUNA holders: 35%
    • All bonded / unbonding Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included
    • For wallets with < 1M Luna: 1 year cliff, 2 year vesting thereafter
    • For wallets with > 1M Luna: 1 year cliff, 4 year vesting thereafter
  • Pre-attack aUST holders: 10%
    • 500K whale cap - covers up to 99.7% of all holders but only 26.72% of aUST
    • 15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff

My assumption is that Anchor protocol will be taking custody of this equity for distribution.
Anchor should receive a sizable portion of LUNA for the bLUNA held in custody on protocol. In addition another size for the aUST that was held in custody.

My recommendation is that the development team / major anchor stakeholders hold this equity in custody and consult with a lawyer for fair distribution. Ideally, an additional top up with ANC tokens sis used to bring the reimbursed aUST holders as close to whole as possible.

We have an experienced community lawyer volunteering his time to help those affected here:

wassielawyer (@wassielawyer) / Twitter

maybe we can start by reaching out to him for opinion or reference towards a team.

From there, all assets gathered from the Terra 2 chain, Terra classic chain, and any ANC needed to be paid out should be pooled and moved into custody. A runway budget should be provided so that developers and team members still have a job and are still able to build.

The remaining assets in custody should then be distributed via a legal proceeding towards aUST holders first such that they are able to recover the maximum amount of principal they have lost. If any equity is left over then and only then can it be distributed back to bluna depositors on Anchor.

I believe this is the only way forward from here to ensure Anchor Protocol remains a fair and neutral party towards

I was an Anchor borrower, the only position I held in UST was a short. I was completely wiped out in the event like everyone else. I hold no affiliation with Anchor Protocol, TFL, LFG. I was simply a common user like everyone else.

Anchor cannot go forward and will set a bad precedent if this is not handled properly in a legal manner. I do not wish to see any criminal charges filed against any of the Anchor team or developers which is why I provide this suggestion for the community to decide upon. I believe Anchor’s main mistake was allowing capital to exit at the velocity it did. LFG and TFL had a lot more of a role to play regarding the insolvent UST.

The IP Anchor is made up of is extremely valuable (in the 100’s of millions of dollars) and as such I believe the Protocol should do whatever is necessary to ensure its long lived existence. This starts with compensating UST user’s loss. Then once that is made whole and the legal issues surrounding the protocol are cleared, relaunch on the new Terra blockchain, this time with a focus on sustainability.

Should we have unanimous agreement on this path forward I will bring it to on-chain vote.

Do you support this proposal in it’s total?

  • Yes
  • No

0 voters

So I’m confused on what to do with my current aUST. Do I need to send this to my terra wallet? The Terra recovery plan makes it sound like we need to have our holdings in the terra wallet to be compensated?

I’m just as lost to what to do with my ANC-UST LP. What is the fate of the ANC token moving forward?

Should I swap for UST now, so that i can get compensation for this attack, or just hold it as ANC?

The silence from the Anchor team is deafening…

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So I’m confused too on what to do with my current aUST. I have a lot of money!!! Do I need to send this to my terra wallet?

How I read it is we must hold ust on May 27 in our wallets to qualify for the new distribution for ust. In order to qualify for the aust distribution we must have held aust on May 7 in anchor. Therefore I think aust must be transferred to terra wallet by May 27 and that is what I am going to do We can obtain both distributions for aust and ust if we so held aust in anchor and will hold ust in terra wallet on May 27.

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aUST is a token, distribution will probably be made direct to the wallet of the holder, provided bLuna collateral may be trickier, but it being a TFL sponsored protocol they probably will take depositors into consideration on the distribution and not direct to an Anchor address, that would make it harder to process.

I’m more concerned regarding the absolute silence of the team towards any future for Anchor.

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Regulators are litigating. Don’t expect any open mouths for the time being. Exchanges already ordered to freeze funds.

We all knew the reg battle would be bloody but damn we haven’t seen the real fall damage yet.

I’ve exited the crypto market entirely, reinvested in proper companies with heavy crypto exposure. My lawyer was right but all these daos and autonomous organizations are going to blow up.

What survives after the bloodshed is what will be worth holding unfortunately.

Prism just announced their solution for their assets.

Still no word from anchor side.

I haven’t withdraw from anchor where I don’t know i need to do so, what should I do to receive LUNA airdrop? does it means i would receive no airdrop?

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