The two most-discussed tokens this week – luna (LUNA) and terraUSD (UST) kept moving lower, despite the team behind these projects announcing “three more emergency actions” in an attempt to save the UST algorithmic stablecoin.
At 10:06 UTC, UST traded at USD 0.42 and was down 30% in an hour and 12% in a day. LUNA, one of the top 10 cryptoassets just a few days ago, traded at USD 0.047 and was down 52% in an hour and 99% in a day. It’s now ranked 142nd by market capitalization (USD 282m).
The suggested “emergency actions” include:
1. Proposal to burn the remaining UST in the community pool.
2. Terraform Labs (TFL), the group behind Terra, will burn the remaining 371m UST cross-chain on Ethereum (ETH).
3. TFL just staked 240 million LUNA to defend from network governance attacks.
Per the team, “Eliminating a significant chunk of the excess UST supply at once will alleviate much of the peg pressure on UST. This is advantageous relative to the slow burn rate and type of downstream effects that inflated on-chain swap spreads induce on the Terra economy over an extended period.”
However, this proposal still needs to be confirmed by their community.
“Considering the urgency of the prevailing issues with Terra, this proposal will be immediately initiated as an on-chain vote,” they said.
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