# Death Spiral II : The last proposal By [chonk](https://paragraph.com/@0xchonk) · 2022-06-08 --- `Famous last words,etched forever in memory.` --------------------------------------------- Famous last words. After reading through the latest proposal he put forth, it’s looking likely that it will be $LUNA/$UST that dies instead. I read it multiple times & still can’t believe how he thought that was a good idea. If i was a $LUNA/$UST holder that got rekt, it feels more like a slap in the face more than anything. The only ones that stood to win from that was them. Forget about killing 2 birds with 1 stone. This was intended to kill multiple with 1/4 of a stone. Below is an excerpt from the proposal, the last 2 points in bold is mindblowing. > Token Distribution > > 1,000,000,000 Luna tokens > > 25% - Community pool, controlled by staked governanc 1% - Essential Developers emergency allocation. No lockup 4% - Essential developers (1 year cliff, 4 year vesting thereafter, granted after launch traction) 35% - All bonded / unbonded Luna, minus **TFL at “Pre-attack” snapshot** For wallets with < 1M Luna: 1 year cliff, 2 year vesting thereafter For wallets with > 1M Luna: 1 year cliff, 4 year vesting thereafter **10% - Luna holders (staking derivatives included) at the “Launch” snapshot - 10% unlocked at genesis, 90% vested over 2 years thereafter 25% - UST holders at the “Launch” snapshot - 10% unlocked at genesis, rest vested over 2 years thereafter** Not sure how i would feel if i was a $LUNA / $UST holder that got rekt, seeing people who buy & hold either right now at these prices getting rewarded for it, even if it was a small %. My interpretation of that is, trying to incentivize new money with the promise of an airdrop. Puts buy pressure for both assets. making it a little more palatable for those that got burned hard to exit at a relatively better price. 35% of total tokens, for leeches (maybe like me) getting rewarded for basically buying at shib like prices. So existing holders will be made partly whole & best part is, this requires nothing from TFL’s end. Who knows, maybe a good time for insiders to exit stage left as well. Talk about a great deal. oooooh weee does that sound good. The other point, looks like a gesture of goodwill to exclude the TFL wallet, but is it really? Though Do mentioned that he sold no LUNA / UST during the debacle, its just his word against yours. remember trust but verify? Also, it almost certain that even with this insane drawdown, its safe to assume that Do (& probably team?) personally is still wealthy. **Of course, its not his personal responsibility to reimburse everyone that got rekt** but also don’t fit something in there to make it seem like it’s some big sacrifice. 1 other thing to point out, the unfortunate part. is that the protocols building on terra are now, forgive my french, but fucked. everything revolved around LUNA/UST & if it goes to shit(even more than already is), they’ll have to rebuild elsewhere. but i’m already seeing a couple publicly reaching out (FTM/OSMOSIS) who will be more than happy to onboard them & im more than happy to use them if there’s value. Finally, my **uneducated opinion** of what will happen: * Proposal completely backfires on him, because of the reasons i stated above. * Exisiting holders who baghold it down feels insulted & just dumps it all. accepting defeat. * Which then leads to even lower prices, too much for most to withstand. * Puke again * Trust completely decimated * A mass migration of protocols * Goblin town, ghost chain city * The end. Question is, by whose hand did luna/ust die from? --- *Originally published on [chonk](https://paragraph.com/@0xchonk/death-spiral-ii-the-last-proposal)*