{"id":61758,"date":"2022-05-20T12:37:44","date_gmt":"2022-05-20T09:37:44","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61758"},"modified":"2025-09-05T14:02:55","modified_gmt":"2025-09-05T11:02:55","slug":"avalanche-team-clarifies-the-volume-of-terra-linked-avax-reserves","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/avalanche-team-clarifies-the-volume-of-terra-linked-avax-reserves\/","title":{"rendered":"Avalanche team clarifies the volume of Terra-linked AVAX reserves"},"content":{"rendered":"<p>Avalanche Foundation disclosed the size of Terra&#8217;s reserve holdings in AVAX tokens to dispel community fears of a sell-off.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">1\/ Some members of the Avalanche Community have inquired about details around the <a href=\"https:\/\/twitter.com\/search?q=%24AVAX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$AVAX<\/a> reserves that the Luna Foundation Guard and Terraform Labs hold. <\/p>\n<p>Tl;dr: the AVAX is currently immobilized. Below is a transparency report \ud83d\udc47<\/p>\n<p>\u2014 Avalanche \ud83d\udd3a (@avalancheavax) <a href=\"https:\/\/twitter.com\/avalancheavax\/status\/1527367369701502978?ref_src=twsrc%5Etfw\">May 19, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Some members of the Avalanche community asked for details about the AVAX reserves held by <a href=\"https:\/\/u1f987.com\/en\/news\/luna-foundation-guard-and-terraform-labs-invest-200-million-in-avax\">Luna Foundation Guard (LFG) and Terraform Labs (TFL)<\/a>. In short: they are currently not in circulation, the tweet said.<\/p>\n<\/blockquote>\n<p>In a thread, the non-profit behind the Avalanche ecosystem said that:<\/p>\n<ul class=\"wp-block-list\">\n<li>TFL acquired 1.09 million AVAX with a one-year lock\u2011up period;<\/li>\n<li>LFG bought 1.97 million AVAX for use in the reserve fund;<\/li>\n<li>these amounts represent 0.5% and 0.9% of weekly trading volume, respectively.<\/li>\n<\/ul>\n<p>The Avalanche Foundation noted that \u201cgiven the proposed <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-hard-fork\">hard fork<\/a> of Terra, LFG did not disclose plans for using AVAX.\u201d<\/p>\n<p>The team added:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>If any sales of reserves are contemplated, we are ready to work with LFG on a sensible trading strategy.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">4\/ Should any sales be contemplated for the LFG reserves, the Avalanche Foundation is ready to work with LFG on a sensible trading strategy.<\/p>\n<p>\u2014 Avalanche \ud83d\udd3a (@avalancheavax) <a href=\"https:\/\/twitter.com\/avalancheavax\/status\/1527367372679458820?ref_src=twsrc%5Etfw\">May 19, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On May 16, LFG <a href=\"https:\/\/u1f987.com\/en\/news\/luna-foundation-guard-drains-3bn-from-reserve-to-rescue-ust\">reported the state of the reserve fund<\/a>, whose crypto-asset value at its peak exceeded $3 billion. In an attempt to maintain the peg of the algorithmic stablecoin <a href=\"https:\/\/u1f987.com\/en\/news\/algorithmic-stablecoins-how-alternatives-to-usdt-and-usdc-are-evolving\">UST<\/a> to the dollar, the organisation spent its reserves in USDT and USDC.<\/p>\n<p>Of the 80,394 BTC on the balance sheet, 313 BTC remained. However, assets in BNB and AVAX remained untouched. Excluding UST and Terra&#8217;s native token LUNA, the fund&#8217;s value fell to about $87 million.<\/p>\n<p>Co-founder Do Kwon proposed <a href=\"https:\/\/u1f987.com\/en\/news\/terraform-labs-co-founder-proposes-terra-hard-fork-to-revive-terra\">to carry out a Terra hard fork<\/a> with a new network and an airdrop. He described it as &#8216;a chance to resurrect the project from the ashes&#8217;. Although the community <a href=\"https:\/\/u1f987.com\/en\/news\/terra-community-rejects-plan-for-hard-fork-and-airdrop-of-a-new-token\">reacted negatively<\/a>, validators <a href=\"https:\/\/station.terra.money\/proposal\/1623\">voted for its implementation<\/a>.<\/p>\n<p>Earlier, Binance CEO Changpeng Zhao said that <a href=\"https:\/\/u1f987.com\/en\/news\/changpeng-zhao-questions-terra-hard-fork-viability\">the hard fork will not work<\/a>, because the new network would have no value.<\/p>\n<p>The founder of Galaxy Digital, Mike Novogratz <a href=\"https:\/\/u1f987.com\/en\/news\/mike-novogratz-says-terra-usd-was-a-big-idea-that-failed\">called UST<\/a> &#8216;a big idea that failed&#8217;.<\/p>\n<p>According to Tether&#8217;s CTO Paolo Ardoino, Terra&#8217;s stablecoin <a href=\"https:\/\/u1f987.com\/en\/news\/tether-cto-labels-terrausd-a-poorly-designed-product\">proved to be<\/a> &#8216;a badly designed product&#8217;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Avalanche Foundation disclosed the size of Terra&#8217;s reserve holdings in AVAX tokens to dispel community fears of a sell-off.<\/p>\n","protected":false},"author":1,"featured_media":26216,"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":[1413,852],"class_list":["post-61758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-avalanche-avax","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61758","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=61758"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61758\/revisions"}],"predecessor-version":[{"id":61759,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61758\/revisions\/61759"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}