The Luna Foundation Guard is a new decentralized organization that has been launched recently to support the Luna ecosystem. The organization was launched in Singapore. The main aim of the Luna Foundation Guard is to help projects that are launched on the Luna network. It will provide grants to such projects and will also establish a forex reserve that will help the UST maintain its peg. The UST is currently the fourth-largest cryptocurrency that is pegged to the US dollar, and it is used on the Terra network. According to Do Kwon, a co-founder of Terraform Labs, the company donated $4 billion dollars in the form of LUNA towards the Luna Foundation Guard Initiative. It will be overseen by a group of founders, including Do Kwon, Kanav Kariya, Nicholas Platias, Jonathan Caras, Remi Tetot, and Bill Chin.
The Forex Reserve
One of the key objectives of the Luna Foundation Guard is to create a forex reserve that will help to maintain the value of the UST. As a stable coin, the UST is meant to maintain a value of $1 at all times. Whenever the price goes under $1, buyers act fast to buy the currency with their LUNA coins so that they can make profits when the price goes back up to $1. The increased demand for the currency ensures that the price is quickly reset to $1. By creating a forex reserve, the Luna Foundation Guard will make it easier to guarantee the stability of the stable coin. In addition, the project will help to fund research into the possibilities of stable coins, and this will further advance the Terra network.
Funding Projects Built on the Terra Network
Another key function of the Luna Foundation Guard is to fund allocate grants to builders, researchers, and members who are trying out bold ideas using the Terra network and economy. In order to apply for grants from the project, you will have to visit the Luna Foundation Guard website and click the ‘Funding and Grants’ link in the upper right corner of the website. The application will be open from the 31st of January 2021. The proposals will be evaluated based on their relevance to the mission of the project, as well as the technical development of the proposals. Another factor that will be considered when evaluating these proposals is the quality of the teams and members.
Terra Cryptocurrencies
The native cryptocurrency of the Terra network is Luna, but a number of other stable coins use the network. The first stable coin that was launched on the network was Terra KRT, and this was pegged to the South Korean Won. Other stable coins on the network include the UST, Terra EUR, Terra JPY, Terra GBP, and Terra SDR. Since these are stable coins, their values are equal to those of the backing fiat currencies. As the native cryptocurrency of the Terra network, LUNA is used for governance, staking, and collateral. As a holder of LUNA, you will be able to use your weight to vote on certain governance issues, just like owners of company stock. You can also stake your LUNA coins to earn profits. Since LUNA has a dynamic supply of 1 billion coins, investors don’t need to worry about their coins losing value out of excess supply.
Conclusion
The Luna Foundation Guard was recently launched in Singapore, and it aims at funding projects that run on the Terra network. Also, it is meant to create a forex reserve that will help to stabilize the value of Terra stable coins such as the UST. As of January 31st, 2022, you will be able to apply for funding from the Luna Foundation Guard.
Sources:
• https://medium.com/terra-money/formation-of-the-luna-foundation-guard-lfg-6b8dcb5e127b
• https://lfg.org/fundingandgrants/
• https://news.bitcoin.com/luna-foundation-guard-launches-to-support-ust-peg-as-stablecoin-blows-past-11b-market-cap/
• https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c#:~:text=UST%20maintains%20stability%20through%20a,of%20LUNA%20at%20any%20time.&text=As%20buyers%20do%20this%2C%20demand,rapidly%20to%20maintain%20UST’s%20stability
• https://forkast.news/what-is-terra-luna-stablecoin/#:~:text=Terra’s%20stablecoins%20are%20algorithmic%20stablecoins,thanks%20to%20the%20LUNA%20token
Source: Gravitate
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