Terraform Labs on Thursday said it has proposed three new emergency measures to save LUNA and UST stablecoin. The company has proposed to burn all UST in the community pool, burn the remaining 371 million UST cross-chain on Ethereum, and stake 240 million LUNA to protect from network governance attacks.
Terraform Labs to increase UST burning and stake LUNA
Terra in a tweet thread outlined plans to prevent the severe dilution of LUNA and restore the UST peg. The tweets also explained Do Kwon’s 1164 proposal to expand the base pool size and burn UST. In fact, the proposal has received 450 million votes, with the majority in favor.
Terraform Labs has started implementing the emergency measures to save LUNA and re-peg the UST. The company aims to burn over 1 billion UST in the community pool and burn the remaining 371 million UST cross-chain on Ethereum under its Agora proposal.
“TFL is also initiating three more emergency actions: 1. Proposal to burn the remaining UST in the community pool. 2. TFL will burn the remaining 371 million UST cross-chain on Ethereum. 3. TFL just staked 240 million LUNA to defend from network governance attacks.”
The UST which was on Ethereum as liquidity incentives will be burned by Terraform Labs. It also says the company is currently exploring the best ways to increase the burn rate of the remainder of its UST holdings.
Trending Stories
With the staking of 240 million LUNA, the company aims to strengthen Terra’s economy and prevent governance attacks.
The implementation of all three measures will help fix the on-chain swap spreads on the system, which will hopefully peg UST again.
Meanwhile, Terra Analytics has revealed that the circulating supply of LUNA increased by 4.355 billion on May 12. Moreover, more than 1 billion have been issued in the past two hours.
Is the SEC Investigating Terra?
While Treasury Secretary Janet Yellen recently criticized risks in Terra’s UST stablecoin, the Securities and Exchange Commission (SEC) is rumored to have started an investigation against UST.
The de-peg of UST with the US dollar and LUNA price falling in just two days may have brought the SEC into the scene. Moreover, the involvement of money managers and the possibility of a coordinated attack on the blockchain could also spur the SEC to investigate.
- South Korean Terra Holders Skyrocketed After Its Crash, Here’s Why
- Verse Metaverse – LA Villa Hand Over On May 30
- Bitcoin (BTC) Faces A Crash To 2020 Lows, Here’s Why
- On-Chain Data: Bitcoin (BTC) Always Pegs Higher Trust Over Ether (ETH) in Bear Market
- Is Terra’s Singapore Office A “Paper Company?”
- Bitcoin (BTC) Options Market Hints Major Downside Risks Over Next 3-6 Months
- Bitcoin (BTC) Fails to Hold $30,000 Again, Guggenheim CIO Predicts A Crash to $8000
- Hard Fork Vs Genesis Chain: Terra Team Clears Air Around Debate
- Prominent Investment Officer Predicts More Downside For Bitcoin Price, Here’s Why
- Investors Move $141 Million Out Of Crypto: CoinShares Report
- AAVE Price Analysis: AAVE Chart Hints Coin Holders May Lose $100 Mark
- What Next For The Fast Recovering FTM Price?
- Ethereum Price Analysis: Triangle Pattern Foretells Upcoming Rally in ETH
- Zilliqa Price Analysis: Channel Breakout Hints ZIL Price to hit $0.1
- Bitcoin Price Analysis: Trapped Bullish Momentum Need Triangle Breakout
- FTM Price Analysis: Buyers Tease Breakout From Long-Coming Trendline
- GALA Price Analysis: High Momentum Fallout Warns $0.075 Fallout
- Solana Price Prediction 2022: Bulls to drive SOL Price to new Highs?
- Theta Price Prediction 2022 : Analysts Insights into the crucial Reversal levels
- Sandbox Price Prediction 2022 : Analysts Show Optimism Towards The Metaverse SAND Token
