Max E.Thu, Jan 20, 2022 7:37 PM
Terraform Labs Allocates $4 Billion To Develop Terra
On January 20, it became known that the company behind the Terra blockchain, Terraform Labs, will provide 50 million LUNA (over $4 billion) in funding to the newly formed non-profit Luna Foundation Guard (LFG). The fund is led by a board of governors, which includes the heads of a number of cryptocurrency companies and industry experts. It will focus on developing the project ecosystem and increasing the sustainability of the Terra USD (UST) stablecoin.
The allocated funds will be used for the further development of the Terra USD stablecoin.
In particular, members of the user community, researchers and developers who will present the most interesting developments in the stablecoin economy will receive grants for their implementation. We are talking about such areas of work as community development, educational projects, various research and development of technologies based on open-source code.
It is expected that on January 22, Terraform Labs will transfer the first tranche of 50 million LUNA tokens to the Luna Foundation Guard. In a statement, the fund states that its main task is to ensure the stability of the supply of the UST stablecoin and to contribute to the development of its ecosystem. Attracting funding, representatives of the fund noted is designed to contribute to the fulfillment of tasks.
Last summer, the project raised $150 million in funding from a number of major investors. Currently, the TVL of decentralized finance applications on Terra is in second place in the ranking ($18.64 billion).
The volume of funds locked in DeFi applications on Terra has reached $18.64 billion, according to DeFi Llama.
The market capitalization of UST for the year increased by more than 5000%, reaching $10.86 billion.