I recently read this idea on Telegram. It was not my idea but one that I personally have been advocating over the last year and eleven months.
Though the tax mechanism is great, we need to have our Lunc supply at a level where we can become competitive pricewise.
Exactly, those seeking stable currency will turn to USDT or USDC. However, that’s why I believe in arbitrage; it’s what destroyed the entire ecosystem, and we can rectify this by employing arbitrage. Yet, we can’t use USTC; we can’t mint more, and people fail to grasp this concept. Hence, I propose a new debt-free currency urgently so that we can engage in arbitrage. Today, we know we can have USTC or native USDC and create reserves. Ironically, we’re using a third-party currency to ensure stability, which indicates a lack of trust in ourselves, let alone others. I believe we first need to minimize LUNC’s supply to the maximum and have a stable currency with arbitrage like EUTC. Initially, I was against using a stablecoin for arbitrage, but given the possibility of holding 90% in dollar value reserves and burning 10% of LUNC in the MM, we can achieve substantial burning, arbitrage, and a stable currency. However, we won’t be entirely decentralized anymore since we’ll have reserves in USDT. But remember, DK had already recognized this and was creating reserves with third-party currencies. Sometimes, what we desire isn’t feasible at the moment, but we must move forward and not wait for more years.
I’ve noticed the Quant is no more. Now what?
I put this idea on Terraport Forum because I’m trying to start a conversation. Positive and negative opinions are welcomed. The only reaction i truly would hate to see is no reaction whatsoever.
Mark Mullen