Terra foundation Luna Foundation Guard (LFG) released a statement on how its reserves are being used.
LFG made a statement as of 7 May on the status of its reserves and how these reserves are used. In a statement on its Twitter account, the foundation said that as of May 8, when the stability of the UST began to deteriorate, this reserve began to be converted into the UST.
1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:
· 80,394 $BTC
· 39,914 $BNB
· 26,281,671 $USDT
· 23,555,590 $USDC
· 1,973,554 $AVAX
· 697,344 $UST
· 1,691,261 $LUNA— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
According to the statement, only 313 BTC out of more than 80,000 BTC in LFG reserves as of today left. According to data from The Block Research, the foundation’s $3.1 billion in reserves currently corresponds to roughly $87 million.
8/ As of now, the Foundation’s remaining reserves consist of the following assets:
· 313 $BTC
· 39,914 $BNB
· 1,973,554 $AVAX
· 1,847,079,725 $UST
· 222,713,007 $LUNA (of which 221,021,746 is currently staked with validators)— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
LFG said it will also try to compensate for the losses of users who have been harmed by the deterioration of the UST’s constant. The foundation will start this with small investors, as recently suggested by Ethereum founder Vitalik Buterin.
10/ The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first.
We are still debating through various distribution methods, updates to follow soon.
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
The statement came after speculation in the crypto community about how to compensate for losing users.
