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LFG | Luna Foundation Guard
@LFG_org
LFG Council has voted to burn another 4M luna to mint roughly 372M ust, which will be used to acquire exogenous collateral. Once this burn is completed, LFG’s non-luna reserves will roughly sit at a value of $2.2B, as well as 8M Luna remaining for future growth. LFG $Luna $ust
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Andrew Ryan
@0xAndrewRyan
Everyone hates central banks but LFG’s acting like one… 👀 If people rly want $UST, shouldn’t the minting of $UST be left to the market to decide? Burn circulating $LUNA and actually pump $LUNA price instead of a central figure burning its non-circulating $LUNA? 🤔
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Pizz
@KiefDurban2
I believe the demand for UST is what has created the need to burn Luna for it. Not positive there, so feel free to correct me please. Just how I see it currently
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Andrew Ryan
@0xAndrewRyan
Which is exactly why I asked, if the demand for $UST really is there, why do we need LFG to burn non-circulating $LUNA to mint more $UST? Shouldn’t that have already been taken care of by the market through the seigniorage mechanism?
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Andrew Ryan
@0xAndrewRyan
Replying to
@stablekwon
@KiefDurban2
and
@LFG_org
Right, so this burn is for purchasing $BTC. Assumed that it was once again burned to meet $UST demand which was just announced 6 days ago. Still wondering how independent the seigniorage mechanism is from TFL and LFG.
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LFG | Luna Foundation Guard
@LFG_org
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Due to such a high demand for $ust , the curve pool is unbalanced again… LFG council members just voted on burning the 4.2m $luna left in LFG treasury. #LUNAtics
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Block Muncher
@block_muncher
The seigniorage mechanism is built into public layer-1 decentralized code that you can go look at and experiment with. There just so happened to be a UST shortage on Crv when they were needing to buy Btc. Win win
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