Following the Analytic report by Terra, the South-Korean cryptocurrency, LUNA market value has dropped to about $0.02, 18 billion coins were surpassed, and 15 billion more LUNAs emerged today; Meanwhile, UST supply is currently at 12 billion. This data was updated on the 12th of May.
Terra UST has been facing a market drop recently
In a bid to tackle the issue, using a Twitter thread, Terra disclosed measures to reinstate the lost UST peg and avert the rapid diminishing of LUNA. Do Kwon’s 1164 proposal ignited UST and increased the size of the base pool. Kwon’s proposal received 450 million votes.
Meanwhile, on Thursday, Terraform Labs suggested that the remaining 371 million UST cross-chain on Ethereum, all remaining UST within the community pool should be ignited, and 240 million LUNA should be hold-up to shield network governance strikes.
Furthermore, The developer of Terra blockchain, Terraform Labs began working with the laid down necessary measures to re-peg UST and restore LUNA. The company is set to ignite 1 billion UST within the community pool and the remaining 371 million UST cross-chain will be burnt under Agora’s proposal on Ethereum.
Terraform Labs will be responsible for burning the UST listed on Ethereum as liquidity incentives. They further stated that the company is discovering ways through which the burn rate of the remaining UST will be heightened.
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The application of the laid-down measures is sure to re-peg the UST and reinstate the expansion of the on-chain swap within the system. According to Terra Analytics, on 12th May, 1 billion LUNA emerged and the 4.355 billion LUNA movement escalated.
However, on Tuesday, the UST dollar peg fell to $0.6 due to the setback faced by the stable coin because of thin liquidity. This happened last week after LUNA foundation Guards (LFG) completely set up its building worth $3billion.
Meanwhile, the prime UST Dollar’s de-pegging to Anchor from pool 53 resulted in a fall from $1 to $0.98. During the de-pegging, Terra’s biggest yield-earning protocol, Anchor, lost about 60% of its earnings.
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