2 years ago
The Luna Foundation Guard, a caller decentralized enactment developed to enactment the Luna ecosystem, has been launched past week successful Singapore. The instauration volition connection backing successful the signifier of grants to enactment initiatives built connected apical of the Luna network. One of its biggest functions volition beryllium to found a “forex reserve” that volition assistance UST, the companion stablecoin of the Luna ecosystem, to support its peg.
Luna Foundation Guard Launches to Support Terra Ecosystem
The Luna Foundation Guard, a non-profit organization, has launched to assistance enactment and support the Terra ecosystem arsenic a decentralized counterparty to Terraform Labs, the institution down the UST currency. This enactment volition person antithetic functions, including the promotion of the ecosystem and besides the nonstop financing of antithetic programs done grants, which volition beryllium fixed done its website starting January 31.
Do Kwon, co-founder of Terraform Labs, announced this caller inaugural via Twitter, informing followers that the institution had donated 50 cardinal LUNA, worthy $4 billion, to this initiative. The enactment volition beryllium constituted successful Singapore and volition beryllium overseen by a radical of founders and leaders, including Do Kwon, Nicholas Platias, Kanav Kariya, Remi Tetot, Jonathan Caras, Jose Maria Delgado, and Bill Chin.
UST Stability the Main Goal
The instauration volition besides enactment to support the peg of the UST stablecoin to the U.S. dollar. In this sense, Kwon stated connected societal media it volition enactment towards:
First, gathering a decentralized forex reserve against which $UST tin beryllium redeemed during currency contractions. It volition enactment towards reserves to run decentralized and onchain.
UST, dissimilar akin stablecoins whose worth is collateralized, works by maintaining an equilibrium betwixt 2 assets successful the Terra ecosystem. This mightiness impact the peg of the currency against the dollar if determination are not capable incentives successful the marketplace to marque a nett via the arbitrage of UST and Luna. The constitution of this enactment aims to debar specified a concern happening.
The UST stablecoin has grown immensely with LUNA, the autochthonal plus of the Terra ecosystem, which present is the fig 9 cryptocurrency by marketplace cap. In the aforesaid way, UST has reached a marketplace capitalization of more than $11 billion, leaving behind DAI, its Ethereum-based counterpart, arsenic the decentralized stablecoin task with the astir worth successful the market.
What bash you deliberation astir the constitution of the Luna Foundation Guard to support UST’s stablecoin peg system? Tell america successful the comments conception below.
Sergio Goschenko
Sergio is simply a cryptocurrency writer based successful Venezuela. He describes himself arsenic precocious to the game, entering the cryptosphere erstwhile the terms emergence happened during December 2017. Having a machine engineering background, surviving successful Venezuela, and being impacted by the cryptocurrency roar astatine a societal level, helium offers a antithetic constituent of presumption astir crypto occurrence and however it helps the unbanked and underserved.
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