Emergency Re-Allocation of ASTRO Rewards to LUNA/UST & ASTRO/UST

With the meme-ification of LUNA, it’s time to assess how Astroport can help build back the Terra ecosystem from Ground Zero.

While the flawed UST mechanism led to an over-printing of LUNA tokens that would make even the central bank of Zimbabwe blush, thankfully that doesn’t have to affect ASTRO token holders. Thankfully, our little haven in the stars has a 1 billion token limit. The Luna Collapse did not change that.

So what’s next? In my mind, the first thing to consider is how to protect the value and scarcity of the ASTRO token itself. The way to do that, I think, is to redirect all ASTRO power (emissions) to the two pairs on the platform that are currently trading. Those pairs, by far and away, are LUNA/UST and ASTRO/UST.

In the past 24 hours, we see this volume profile. There are only 3 pairs above 1M UST.

  1. LUNA/UST - 89.8M UST
  2. ASTRO/UST - 11.17M UST
  3. XDEFI/UST - 1.45M UST

Every other pair is just dust, really. We should stop ASTRO dilution by incentivizing those pairs. I realize this has implications for the Locked Liquidity. To discuss that please go to this topic.

I think the goal for the next week or so will be to help stabilize the ecosystem and to do that, we need to provide more liquidity for LUNA token. As the entirety of Astroport liquidity was denominated in UST and now people are (understandably) weary of that digital asset. We need to give the community a reason to build back liquidity in the LUNA/UST pair. Focusing a substantial portion of ASTRO emissions should help solve this.

I would propose 85% of ASTRO emissions go to LUNA/UST until further notice.

Since we also want to preserve our lovely ASTRO, it makes sense that we devote the remaining 15% of ASTRO emissions to help increase the liquidity of the ASTRO/UST pair.

Although I think in the long run Astroport will need a different base asset - maybe something like a 3crv (3astro!) or egads! a reconstituted UST - for now, we need to be thinking about providing an environment of stability as the Terra ecosystem recovers from the most brutal exogenous shock in the history of crypto. That’s why this topic says EMERGENCY!!!

While the events of the past week are indeed a horror to consider, we’re not going to get anywhere staring woefully in the mirror. The time for action is nigh! And this seems like a good first step to me.

Let’s not let this project die. There are too many good ideas, too many dev hours, and too many community members to let that happen.