Terraform Labs Donates 10 Million LUNA to LFG

  • Terraform Labs has donated 10 million LUNA — worth roughly $880 million — to the Luna Foundation Guard (LFG).
  • The Luna Foundation Guard has billions in its treasury and holds nearly 40,000 BTC.
  • LUNA has been experiencing a price surge since the start of 2022.

Terraform Labs has announced that it donated 10 million LUNA to the Luna Foundation Guard (LFG). The latter is a treasury that supports the development and growth of the Terra ecosystem. The official Terra Twitter handle announced the donation over the social media platform on April 14, adding to the fast-growing coffers of the LFG.

The LFG is now sitting on a few billion dollars of worth cryptocurrency reserves. It has been accumulating more BTC at a sharp pace since the start of the year and aims to hold at least $10 billion worth of BTC. It now holds over 40,000 BTC.

terraform labs donates to LFG
LFG BTC reserve: OKLink

The LFG describes its mission as one “dedicated to creating and providing greater economic sovereignty, security, and sustainability of open-source software and applications that help build and promote a truly decentralized economy.” Essentially, it is focused primarily on supporting Terra and the flagship stablecoin TerraUSD (UST).

The UST reserve supports the peg price of the stablecoin and is used to bring the price of UST back to the peg by swapping UST for other assets that capitalize the reserve. The foundation also offers funding and grants.

The donation from Terraform Labs comes at a time when both it and the LFG are in the news for various reasons. Not all of the news has been good, but the asset appears to be consolidating its growth over recent months well enough.

LUNA and UST Making All the Headlines

Terra price
LUNA Price: TradingView

At the same time, Luna’s price has been the subject of much discussion. Terraform Labs co-founder Do Kwon has taken up a $1 million and $10 million bet, wagering that the price of LUNA would not fall below $88 in about a year’s time.

LUNA’s price went up by a whopping 17% towards the end of March and the start of April, and many wonders if it is sustainable. The LFG has been burning LUNA to mint its stablecoin UST, and that too has been discussed repeatedly.

Still, none of the incidents appear to be affecting LUNA and Terraform Labs too much. The project continues to march on with development and growth, and time will tell if it will prove to be one that is here to stay.

Go to Source

Powered by WPeMatico