It's extra damning if you realize that the team behind TerraForm Labs KNEW there was no way to make the mechanism work. After all, they tried it before, and fa

It's extra damning if you realize that the team behind TerraForm Labs KNEW there was no way to make the mechanism work. After all, they tried it before, and failed, see Basis Cash: https://www.coindesk.com/tech/2022/05/11/usts-do-kwon-was-behind-earlier-failed-stablecoin-ex-terra-colleagues-say/ https://www.coindesk.com/tech/2022/05/11/usts-do-kwon-was-be... What is saddening me more is that all these teams are now making the same mistakes the cypherpunks in the'80, '90' and early '00 made. The problem with any stablecoin is that you cannot fake trust. Either you have dollars/gold in a vault or you don't. The solution that bitcoin came up with (for the lack of gold or dollars in a vault) was to provably spend or lock-in, not gold or dollars that can be taken out again, but electricity itself. The expenditure was done through the hashing algorithm HashCash, and by the very nature is this process, the electricity cannot be taken out of the system again. An interesting paper on this subject can be found here: https://cacm.acm.org/magazines/2017/12/223058-bitcoins-academic-pedigree/fulltext https://cacm.acm.org/magazines/2017/12/223058-bitcoins-acade...