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2022-05-14 02:10:22
Terra (LUNA) is doing everything it can to reduce the circulating supply of stablecoin UST.
Regarding the cause of the LUNA – UST incident, readers can see CHK’s series of reports here:
In a notice posted on the afternoon of May 12, Terraform Labs announced new measures to “rescue” UST.
In addition to increasing the amount of LUNA issued to the market to buy back UST, as announced by CEO Do Kwon yesterday, Terraform Labs today proposed 3 new changes to the project, including:
3/ TFL is also initiating three more emergency actions:
1. Proposal to burn the remaining UST in the community pool.
2. TFL will burn the remaining 371 million UST cross-chain on Ethereum.
3. TFL just staked 240 million $LUNA to defend from network governance attacks.— Terra (UST) Powered by LUNA (@terra_money) May 12, 2022
– Burn all remaining UST in the community fund.
– Burn 371 million USTs circulating on the Ethereum network in liquidity reward pools.
– Staking 240 million LUNA to prevent the network from being attacked.
Terraform Labs estimates these measures will remove more than 1.3 billion UST from circulation, representing 11% of the stablecoin’s current total supply of 11.8 billion UST. The Terra community will soon vote on the proposal.
In addition, the blockchain management unit Terra also announced that it is looking to burn the amount of UST they have accumulated over the past few days from “subsidizing” UST. In the last 72 hours, the circulating supply of LUNA has increased from 400 million LUNA to 3.4 billion LUNA.
The LUNA price meanwhile has suffered heavy damage, losing more than 99.7% of its value in the past days and is currently trading at just $0.08.
Meanwhile, the price of UST is hovering at $0.6 at the time of writing, still well below the $1 threshold it must return to.
Synthetic CHK
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