{"id":58794,"date":"2022-03-15T17:10:58","date_gmt":"2022-03-15T15:10:58","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=58794"},"modified":"2025-09-04T18:37:43","modified_gmt":"2025-09-04T15:37:43","slug":"lfg-to-burn-4-million-luna-to-mint-roughly-372-million-in-ust-for-external-collateral","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/lfg-to-burn-4-million-luna-to-mint-roughly-372-million-in-ust-for-external-collateral\/","title":{"rendered":"LFG to burn 4 million LUNA to mint roughly $372 million in UST for external collateral"},"content":{"rendered":"<p>The Terra ecosystem development nonprofit Luna Foundation Guard (LFG) announced a burn of 4 million LUNA to mint roughly $372 million in the stablecoin UST for the subsequent purchase of external collateral.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">LFG Council has voted to burn another 4M luna to mint roughly 372M ust, which will be used to acquire exogenous collateral. Once this burn is completed, LFG\u2019s non-luna reserves will roughly sit at a value of $2.2B, as well as 8M Luna remaining for future growth.<\/p>\n<p>LFG<a href=\\\"https:\/\/twitter.com\/search?q=%24Luna&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$Luna<\/a> <a href=\\\"https:\/\/twitter.com\/search?q=%24ust&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$ust<\/a><\/p>\n<p>\u2014 LFG | Luna Foundation Guard (@LFG_org) <a href=\\\"https:\/\/twitter.com\/LFG_org\/status\/1503680315969060864?ref_src=twsrc%5Etfw\\\">March 15, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The initiative is aimed at further strengthening the 1:1 peg of UST to the USD amid market turbulence. Upon its implementation, LFG&#8217;s reserves will total about $2.2 billion, in addition to 8 million LUNA.<\/p>\n<p>Before the collateral was established, the peg of the stablecoin was maintained solely by burning LUNA.<\/p>\n<p>Some skeptics argue that in a bear market the asset&#8217;s price could fall, potentially compromising UST&#8217;s stability. On March 15, Terraform Labs CEO Do Kwon, <a href=\"https:\/\/u1f987.com\/en\/news\/terraform-labs-ceo-bets-11-million-on-lunas-rise\">made two bets totaling $11 million<\/a> that this would not happen.<\/p>\n<p>Earlier in March, Terraform Labs <a href=\"https:\/\/u1f987.com\/en\/news\/terraform-labs-donates-12-million-luna-to-luna-foundation-guard\">transferred<\/a> $1.2 billion in LUNA to the Luna Foundation Guard to support UST stability. In February, the nonprofit organization <a href=\"https:\/\/u1f987.com\/en\/news\/luna-foundation-guard-raises-1-billion-to-bolster-ust-stability\">raised<\/a> $1 billion for the same purpose.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\\\"https:\/\/t.me\/forklogfeed\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">ForkLog Feed<\/a> \u2014 the full news feed, <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">ForkLog<\/a> \u2014 the most important news, infographics and opinions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Terra ecosystem development nonprofit Luna Foundation Guard (LFG) announced a burn of 4 million LUNA to mint roughly $372 million in the UST stablecoin for the subsequent purchase of external collateral.<\/p>\n","protected":false},"author":1,"featured_media":58795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[807,852],"class_list":["post-58794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-stablecoins","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=58794"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58794\/revisions"}],"predecessor-version":[{"id":58796,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58794\/revisions\/58796"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/58795"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=58794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=58794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=58794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}