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1:34 AM · Apr 9, 2022Twitter Web App

· Apr 8

The LUNA exposé thread.

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2/ twitter.com/JackNiewold/st Luna does get burned 1:1 with UST minted - all you need to do is to try to do it yourself Go to the "swap" section of Terra station, mint 100 ust, and check out supply changes on the dashboard section for Luna But of course he didn't try it

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· Apr 8

1. 'BURNED' $LUNA DOESN'T GET BURNED Previously if you swapped $UST for LUNA, it would burn $LUNA. NOW, if a user creates $UST, some percentage of the LUNA is used to buy $BTC. Obviously, this creates inflationary price pressure on $LUNA.

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3/ twitter.com/JackNiewold/st Ignorant noise

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· Apr 8

So it's bad for LUNA price, for one. But it's also weird to me that this core 'burn' mechanism has now been used to just market sell, then buy BTC. That's not a burn, that's not deflationary at all. (Source: this vid with do kwon, 45m youtube.com/watch?v=XARHjN)

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4/ twitter.com/JackNiewold/st "ICO profits" imply there is a party profiting If building reserves is "ICO profits", then wait, hold up, 80% of all spot volume on all crypto happens through the profits Tether has taken to build its 1:1 dollar backing

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· Apr 8

2. THE BTC BACKSTOP IS PAID FOR BY ICO PROFITS The $BTC backstop is $10b, and paid for with a few different sources: 1. $3b from LFG (which is funded by the ICO), in the form of $LUNA, which is further downwards price pressure on $LUNA 2. $7b of seignorage profits

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5/ twitter.com/JackNiewold/st I don't understand how the source one quotes can be from an anon on Twitter Luna that gets burned is not sent to a wallet, it is deducted from the total supply

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· Apr 8

3. BURNED LUNA IS HELD IN DO KWON'S PRIVATE WALLET Profits from seignorage set to be 'burned' (sent to an unusable wallet) go to Do Kwon's private wallet first. Not a contract, not even a multisig: Do Kwon's private wallet. twitter.com/0xfr_/status/1

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6/ twitter.com/JackNiewold/st SDT was minted in reserves at genesis to allow minting in case mint demand > mint cap while liq is low, and of course was disclosed at length Now burning as of Oct 2021 via gov:

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Terra

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@terra_money

· Oct 28, 2021

1/ A new proposal to burn the remainder of the SDT Stability Reserve (711,003,512 SDT) is now posted on Agora

agora.terra.money/t/burn-the-rem

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