ARC-135: Send unbacked difference of ASTRO to Terra

Proposals ARC (Astroport Request for Comments)
1

Summary

This proposal seeks to allocate 9,719,116.985269 ASTRO from the Neutron Treasury to the Terra Treasury to address the remaining unbacked difference caused by the Terra hack and restore the 1:1 ratio between Terra ASTRO and Neutron ASTRO. After accounting for seized assets and the DCA buyback funded by 136,338 USDC provided by Phoenix Directive, the Terra Treasury currently holds 23,798,586.66567 ASTRO. This proposal will send the remaining difference to the Terra Treasury, where the total amount will be burned with the assistance of Terra governance.

Motivation

The Terra hack resulted in the illegal minting of ASTRO tokens, disrupting the balance between Terra ASTRO and Neutron ASTRO. The total Terra ASTRO supply is 136,820,973.50188, while 103,303,269.850941 ASTRO is escrowed on Neutron for Terra, leaving an unbacked difference of 33,517,703.650939 ASTRO. Efforts to recover the ratio have included the seizure of 19,000,000.86577 ASTRO and the DCA buyback of 4,798,585.7999 ASTRO with 136,338 USDC provided by Phoenix Directive, which has already been sent to the Terra Treasury. These efforts have reduced the unbacked difference to 9,719,116.985269 ASTRO. Allocating this remaining amount will fully restore the 1:1 ratio, ensuring the integrity and stability of Astroport.

Implementation

  1. Allocate 9,719,116.985269 ASTRO from the Neutron Treasury to the Terra Treasury.
  2. With the assistance of Terra governance, burn the total ASTRO held in the Terra Treasury to eliminate the unbacked difference and restore the 1:1 ratio.

Conclusion

By allocating 9,719,116.985269 ASTRO from the Neutron Treasury to the Terra Treasury and burning the total amount, Astroport will fully resolve the unbacked difference caused by the Terra hack and restore the 1:1 ratio between Terra ASTRO and Neutron ASTRO. This action ensures the integrity of the protocol and reinforces Astroport’s commitment to transparency and stability for its users and stakeholders.

Executable messages

[
  {
    "wasm": {
      "execute": {
        "contract_addr": "neutron19sq60cxtsjcx7vw25c63wyt27fxevuh6l7vxcn04u0t0rueyfpvq4mc75l",
        "msg": "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",
        "funds": []
      }
    }
  }
]