Finally, Luna Foundation decides to give compensation to UST holders

The project team behind the Terra network finally revealed all the reserved remaining assets behind Terra’s Stablecoin UST.

On 8 May UST stablecoin of Terra network started to face a small downfall in its value and after that its value touched the ground. At the time of writing this article, the current value of the UST coin is $0.1, which means its value is 90% down from its actual stable value of $1.

On 16 May, Luna Foundation Guard (LFG), a team behind the Terra blockchain network dedicated to build the community of the Terra network, responded to all questions raised by the crypto industry against the decisions and actions of the Terra project team to support the people, who lost their funds in UST stablecoin.

LFG confirmed that on 7 May, There was a total of 80,394 Bitcoins with additional 6 crypto assets, which included UST & Luna.

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1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:
· 80,394 $BTC
· 39,914 $BNB
· 26,281,671 $USDT
· 23,555,590 $USDC
· 1,973,554 $AVAX
· 697,344 $UST
· 1,691,261 $LUNA

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

After that every day, Team used reserved funds to protect the pegged value of UST to $1. Now LFG holds a total of 313 Bitcoins.

8/ As of now, the Foundation’s remaining reserves consist of the following assets:
· 313 $BTC
· 39,914 $BNB
· 1,973,554 $AVAX
· 1,847,079,725 $UST
· 222,713,007 $LUNA (of which 221,021,746 is currently staked with validators)

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

LFG confirmed that it will use the reserved remaining funds to give compensation to the UST holders, who lost funds but it will first consider those UST coin investors, who faced losses in small amounts.

10/ The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first.

We are still debating through various distribution methods, updates to follow soon.

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

Through these tweets, Luna foundation Guard responded to the most asked question by the crypto industry.

On 15 May, Binance CEO Changpeng Zhao asked the team of Terraform to give all the precise details about the reserved fund and all the steps taken by the team under the critical situation.

Now reports are spreading in the Crypto industry that Terra may get better support from crypto companies because it tried its best to protect the UST users.

Beside all these things, many people are willing to know whether Luna coin investors will get any compensation.

Read also: Crypto firm Elwood secured funding from Goldman Sachs and Barclays

Finally, Luna Foundation decides to give compensation to UST holders

 

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