Terraform Labs donates 12 million LUNA to Luna Foundation Guard

Terraform Labs has donated an additional 12 million LUNA to the non-profit Luna Foundation Guard to support the stability of UST — a key element of the Terra ecosystem.

TFL has donated 12M additional $Luna to @LFG_org. https://t.co/KOqaABKWZi

The funds will be burned to mint $UST, and thereafter used to grow LFG’s reserves.

At current prices, this reflects another 1.2B incoming addition to the $UST reserves.

🌕

— Do Kwon 🌕 (@stablekwon) March 11, 2022

Terraform Labs CEO Do Kwon stressed that the transferred coins will be burned to issue and bolster the reserve fund algorithmic stablecoins. According to the current price of LUNA, around $100, the 12 million tokens would yield about 1.2 billion UST.

Luna Foundation Guard (LFG) was created in January. The organization focuses on developing the Terra ecosystem and strengthening the resilience of the UST stablecoin.

LFG is governed by an independent board of governors, comprising industry experts and heads of crypto companies, including Do Kwon.

The organization also provides grants to developers, researchers and community participants.

According to CoinGecko, UST’s market capitalization stands at $14.4 billion. The asset ranks 14th.

Earlier in February, Luna Foundation Guard raised $1 billion in a private sale of the LUNA crypto asset to a number of investors.

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