Terra has released additional measures to correct the UST’s constant.
Terra developer Terraform Labs has released some additional considerations to fix the UST’s constant and support the LUNA price. By quadrupling the amount of UST that can be purchased with LUNA, proposal 1164 aims to allow UST holders to withdraw cash by ensuring the stability of the UST. However, this is putting tremendous downward pressure on the LUNA price.
Terraform will also burn the remaining 1 billion UST in Terra’s community pool; announced that it will burn 371 million UST in Ethereum used for liquidity incentives by sending it to the Terra network and stake 240 million LUNA to protect the network from possible attacks. With this move, the company aims to make it less likely that someone who buys a large number of LUNA for a low price will attack the network.
LUNA continues its decline at the time of publication and is trading at $0.068. Similarly, UST, after rising as high as $0.78, declined again and is trading at $0.44 at the time of publication.
