> For every $1 of UST, there’s an algorithm to maintain parity with the US Dollar
Well that was broken yesterday. The algorithm is not sufficient because you have to have collateral to maintain parity correlation. Why would I "believe" in an algorithm? It either works or it doesn't. This one obviously doesn't.
Interesting the title of the section is "belief." Things are not worth what we think they're worth because we believe it. It's a common misconception. Something is used because we believe it will still be worthwhile tomorrow, but something isn't worthwhile tomorrow just by believing it will be.
> Belief in the protocol based on its mechanics, its math, its history, and its team.
Belief in it's team? Nobody in their right mind in this market would ask you to believe in a team. Belief in the mechanics? Based on the writing, I'd be willing to bet the author doesn't understand the mechanics. I do, and I've explained it in this thread a few times, it is nonsensical.
Then there's an admission of investment into the project and therefore bias.
Then ample appeal to authority, fallacious explanations as to why Terra is different than competitors with a similar scheme, "cash flow" which is laughable in a decentralized context. The author has the audacity to claim that Luna is backed by transaction fees. This is absurd.
Th rest is just shitting on something called Titan and something called Iron, which are probably low hanging fruit.
Go read about nubits and nushares and learn a thing or two about previous attempts to do this.
I'd be curious to hear whether you still think it's a scam after reading it.