The Terra ecosystem is driving massive expansion and growth with the latest announcement of the LUNA Foundation Guard (LFG). It is a non-profit organization based in Singapore with the goal of supporting and sustaining the development of open source technology.
LFG’s main focus will be on building reserves and protecting the UST rate during volatile market conditions. The second focus will be on allocating capital to grow the Terra ecosystem. LUNA Foundation Guard has secured an initial gift allocation of 50 million LUNA tokens coming from Terraform Labs. Do Kwon, Co-Founder and CEO of Terraform Labs said:
“LFG has a mission to continuously support the fixed stability of Terra’s stablecoins and grow the ecosystem supported by Terra’s best builders, providing a new avenue for growth and sustainability. stability of decentralized money. A decentralized economy needs decentralized money, and the LFG provides another interconnected resource to achieve that goal.”
LFG – Strengthening Terra’s Economy
With that said, LFG’s main focus will be on boosting the Terra economy. This includes funding specifically for Defi projects that have strong demand for Terra’s algorithmic stablecoins while pioneering the “emergence of decentralized money in the base layer of Terra.” emerging DeFi technology systems”.
Therefore, LFG will focus on the stability and sustainability of Terra’s native stablecoin TerraUSD (UST). LFG operations will be overseen by the International Council and will continue to add new builders to the Terra Ecosystem. Speaking of this development, Nicholas Platias, Founder of Chronos Finance says:
LFG’s mission is to reshape how the industry views algorithmically stable coins and their long-term sustainability. LFG provides another lever to close the demand loop for Terra stablecoins, build a vibrant economy around their use on Web 3 applications, and provide a stronger peg defense in time fluctuations.
Terra’s native stablecoin UST is currently the fourth largest stablecoin on the market. Terra has achieved this milestone in a very short amount of time. According to the news, the LUNA price was up 4% as of writing the story and is currently trading above $81. Terra’s LUNA has recorded a strong success making it to the top ten list of cryptocurrencies.