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Terraform Labs gifts another $880M to Luna Foundation Guard

April 15, 2022No Comments


Terra (LUNA) blockchain developer Terraform Labs (TFL) has gifted the Luna Foundation Guard 10 million LUNA worth about $820 million at current prices.

Luna Foundation Guard (LFG) is a not-for-profit organization attached to Terra that is tasked with securing the Terra Network algorithmic stablecoin USD (UST) to keep it pegged to the US dollar.

The latest announcement from Terraform Labs came via Twitter on April 14, but did not describe what the funds will specifically go towards. However, the transaction data from Terra Finder shows that 7.8 million LUNA (approximately $630 million) were quickly transferred from the LFG reserve wallet yesterday.

Given the recent form of Terra, led by founder Do Kwon, who has the goal of amassing $10 billion worth of Bitcoin (BTC) to support UST reserves, many are hoping that some of the funds will go towards building their digital gold reserve. Another part of LUNA can be burned (one way the UST/USD peg is maintained).

Some additional Avalanche (AVAX) tokens could also be on the buy list, considering both TFL and LFG bought $100 million worth of AVAX last week.

Following Terra Recent (and ongoing) Bitcoin (BTC) buying spree, including the purchase of approximately 2,500 BTC ($100 million) just two days agothe wallet belonging to LFG has become the third largest holder of digital gold worldwide, only behind MicroStrategy and Tesla.

The latest donation to the LFG comes just over a month after TFL gave away $1.1 billion worth of LUNA so it could burn. mint UST and grow your reserves.

According to LFG accounting recordsits total reserve balance is $2.44 billion at the time of writing, with BTC accounting for about 70% of that figure at $1.71 billion.

Related: Terra Key Price Support Level Breaks After 30% Weekly Drop โ€“ More Pain Ahead For LUNA?

Despite all the bullish developments with Terra of late, the price of LUNA is down 7% in the last 30 days to stand at $81.65 at the time of writing.