From discord:
How does everyone feel about this idea:
Everyone gets their full position in newly minted PERP, and that PERP is locked+staked for 1 year. All of the remaining USDC funds are paid over 2 years as weekly staking rewards to all staked PERP.
To be clear you get 0 of your USDC back. You only get staked/locked PERP.
Existing PERP holders are happy because they get a yield increase, it incentivizes new buyers of PERP because of the increased staking yield. When PERP 1 year unlocks, the yield increase continues for another year so many will stay staked. If PERP price holds then everyone gets their funds back.
PERP price may initially increase because of this.At least this way there is a chance that everyone is repaid, and PERP doesn’t suffer reputation damage.