Rebirth Gate
Proposal to the Terra Classic Community: Reducing LUNC and USTC Supply by More than 50% and 70% Respectively
Hi, everyone!
Just a quick note: A lot has been happening in the ecosystem recently, which is great — discussions about burns, various plans for market module, and re-peg talks. I believe that what needs to be done is to continue with the burn tax, open staking for USTC, and proceed with the re-peg. Additionally, we need to focus on technical aspects such as cleaning up the code, aligning more closely with the rest of the Cosmos ecosystem, and improving communication with third-party applications.
However, one topic we always come back to is: what is the true circulating supply. It’s crucial to understand the reality of the circulating supply, not just what this or that person claims. As we know, we have a large circulation and total supply of both LUNC and USTC. And if we could legally and effectively reduce this supply without opposition?
The Proposal: Chain Migration to Reduce Total Supply
We have a process that could not only reduce the chain size by eliminating old contracts but also significantly decrease the total supply of both LUNC and USTC. How, you may ask? It’s simple: through a chain migration.
How Would This Work?
If we migrate the chain, won’t all the old, abandoned contracts be transferred to the new ID as well? That would be true if the process were automatic. Therefore, I suggest creating a portal where users must manually convert their tokens and/or contracts to the new chain.
This process would ensure that abandoned contracts and zombie wallets (wallets that are inactive and hold significant amounts of tokens) do not get migrated. By not transferring these assets, we can effectively “burn” them and reduce the total supply.
Potential Impact
- How much smaller and more efficient would the chain become? We’re not sure yet, but it could be a significant reduction.
- How many tokens could be burned through this process? Some estimates suggest that up to 70% of USTC and 50% of LUNC are held in zombie wallets, although these numbers are not confirmed. However, we do have a way to verify this! ;)
Pros:
- A leaner, more efficient chain.
- Drastic reduction in both total and circulating supply.
- End of speculation regarding whether certain wallets are zombies or not.
- Potentially the ability to block scam wallets (such as those related to the BTC Turk hack) from interacting with the portal.
- Legally eliminate coins locked in abandoned contracts.
Cons:
- Withdrawals and deposits could be temporarily halted in Cexs.
- High level of coordination required with all CEXs and third parties involved.
By implementing this proposal, we can make the Terra Classic chain more versatile and secure while addressing key issues around token supply and inactive wallets.
Vegas
