Luna Foundation Guard (LFG) YesannouncePlans to burn 4 million Luna coins Terra (LUNA), currently worth 365 million USD. To generate $372 million TerraUSD (UST) which will be used to buy “External Guarantee”
Founded as a non-profit in January, LFG recently sold $1 billion worth of LUNA to buy bitcoin to fund TerraUSD’s stablecoin (UST).
According to LFG, when the incineration is complete, LFG will hold approximately $2.2 billion in non-LUNA reserves. while still holding 8 million LUNA for future growth.
these reserves It will reserve for UST, Terra’s largest stablecoin, to ensure that UST is able to maintain its value even during the big sell-off in the crypto market.
Prior to the establishment of asset reserves, UST was based solely on the LUNA incineration mechanism, where $1 LUNA was burned into $1 UST.
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