The Terra Ecosystem is pushing for major expansion and growth with the latest announcement of the LUNA Foundation Guard (LFG). This is a Singapore-based non-profit with a mission objective to support and sustain the growth of open-source technology.
The primary focus of the LFG will be building reserves and safeguarding the UST peg during volatile market conditions. The second focus will be allocating funds to the Terra ecosystem development. The LUNA Foundation Guard has already secured an initial gift allocation of 50 million LUNA tokens coming from Terraform Labs. Do Kwon, Co-Founder and CEO of Terraform Labs said:
“The LFG mandate to continuously support the peg stability of Terra’s stablecoins and ecosystem development powered by Terra’s best builders offers a new pathway for the growth and sustainability of decentralized money. A decentralized economy needs decentralized money, and LFG provides another nexus of resources to achieve that goal”.
LFG – Bolstering the Terra Economy
As said, the primary focus of LFG will be bolstering the Terra economy. This includes specifically funding Defi projects that have strong demand for Terra’s algorithmic stablecoins while pioneering “the emergence of decentralized money at the base layer of an emerging DeFi technology stack”.
LFG will thus focus on the peg stability and sustainability of Terra’s native stablecoin TerraUSD (UST). The functioning of the LFG shall be overseen by an International Council and will continue to add new builders to the Terra Ecosystem. Speaking of this development, Nicholas Platias, Founder of Chronos Finance said:
LFG’s mission is going to reshape how the industry views algorithmic stablecoins and their long-term sustainability. The LFG offers another lever for closing the demand loop of Terra stablecoins, building a vibrant economy around their usage across Web 3 applications and providing more robust peg defenses during volatility.
Terra’s native stablecoin UST is currently the fourth-largest stablecoin in the market. Terra has achieved this milestone in a very short period of time. Following the news, the LUNA price is up 4% as of writing the story and is currently trading above $81. Terra’s LUNA has registered a strong success making its way into the top-ten crypto list.
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