Terraform Labs Donates 10 Million LUNA Coins.
The Luna Foundation Guard (LFG) has announced that it has received a donation of 10 million units of $LUNA tokens worth $880 million from Terraform Labs (TFL), the company behind the creation of Terra.
“TFL has gifted an additional 10 million LUNA to the LFG_org,” LFG announced in a tweet.
TFL has gifted an additional 10 million $LUNA to the @LFG_org. https://t.co/tNirkgGGm0
— Terra (UST) ? Powered by LUNA ? (@terra_money) April 14, 2022
According to the details of the transaction, the funds were sent earlier today for a fee of 0.5 TerraUSD ($UST), the official stablecoin of the Terra ecosystem.
Prior to the recent donation, the LFG held about 42,410 bitcoin (BTC) worth $1.75 billion, 50,000 LUNA ($4.35 million), 398 million USDC, and 151 million Tether (USDT), Wu Blockchain revealed.
Not New
It is worth noting that this is not the first time TFL will be making LUNA donations to the Luna Foundation Guard.
Last month, Do Kwon, the CEO of Terraform Labs announced that the company has made a donation of 12 million LUNA valued at $1.2 billion at the time of the transaction to LFG.
At the time, the company noted that its goal is to continue growing the LFG’s decentralized forex reserves. The fund is dedicated to supporting the growth of the UST stablecoin and maintaining its peg on a 1:1 ratio to the United States dollar.
As explained by Kwon, Terra will use the donations to mint and burn $UST, and further grow the reserve of the stablecoin.
Terra Buying Bitcoin as Reserve for UST
Terra is working relentlessly to earn the trust of users regarding the stability of the UST stablecoin and its backing by the U.S. dollars.
Several efforts have been made so far toward earning users’ trust in the stablecoin, including a declaration made by the LFG last month that it will be purchasing $10 billion worth of BTC as a reserve for $UST.
The company has used several platforms, including Binance, to purchase BTC, which will provide backing for its stablecoin.
The LFG’s BTC wallet currently holds 42,406 coins that are cumulatively worth $1.7B.
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