We need to just sit back, be patient. Let things run it's course.
We're in a solid position with KP, Willy, Ntilikina and having all picks 2018 onward. We even have some interesting second round picks, D league. veteran minimum free agent rookies we've made as signings.
The rebuild should be the only focus.
Get Melo away from the team, he is like an infectious cancer to a young team trying to establish good habits on both sides of the ball.
Trade him or try to look into a 20$M buy out, which when stretched, allows Knicks to have something like 30$M in capspace this year (with DRose leaving). Then target a restricted free agent whose team is either uncertain to pay the player or in the sweepstakes for a star free agent. Restricted free agents are high quality investments if you can make the deal as they are usually a couple years into the league, with lots of upside still left or atleast athletic prime ahead.
Refrain from Joakim Noah, Evan Turner, Kent Brazemore type of free agents.
Look to do what Cuban did last summer by use the capspace to get some young rising FA talent like Barnes.