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LFG Plans To Compensate HODLers With Its Remaining Reserves

LFG Plans To Compensate HODLers With Its Remaining Reserves Terra News
  • The Luna Foundation Guard has just released a thread outlining how exactly it will deploy its funds during the UST de-pegging phase.
  • The Foundation is planning to use its remaining assets to compensate users of UST and will prioritize the smallest HODLers first.
  • Various people in the crypto space have given their own suggestions to the Foundation, including Ethereum’s founder.

The Luna Foundation Guard has just released a thread outlining how exactly it will deploy its funds during the UST de-pegging phase. This means that the wait could finally be over and people may get firm answers to their questions.

As of May 7, the Luna Foundation Guard’s reserves consisted of the following assets:

However, on May 8, when the price of UST started deviating from the $1 peg, the Foundation started converting its reserve into UST. It did so by directly executing on-chain swaps and transferring Bitcoin to a counterparty to enable them to enter into large-scale, short-notice trades with it.

On May10, UST dipped into the $0.7 range.

According to the thread, the Foundation is planning to use its remaining assets to compensate users of UST and will prioritize the smallest HODLers first. At the moment the team seems to be debating upon the distribution methods, and is planning on updating HODLers as soon as a decision is made.

The Foundation also revealed in a Tweet on May 16 that “all assets will be returned to wallets tagged in dashboard.Ifg.org shortly – the Luna previously staked is unbonding, and will be returned in 20 days.”

Various people in the crypto space have given their own suggestions to the Foundation, including Ethereum’s founder Vitalik Buterin, with regards to how Terra could relieve its small investors by using funds from its reserves.

Since the Foundations seems to be taking this advice, it means UST HODLers can finally take a deep breath in weeks.

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Danielle has a post graduate degree in Criminology. She is an active investor in the crypto space and is on a mission to learn more and share what she learns with the community.