The founding father of Terraform Labs (TFL) and Ethereum competitor Terra (LUNA) Do Kwon has outlined plans to build up a whopping $10 billion value of Bitcoin (BTC) so as to add to the challenge’s stablecoin reserves.
Terra is a decentralized blockchain platform that specializes in stablecoin minting. Its Terra USD (UST) is an algorithmic stablecoin pegged to the worth of the U.S. greenback, with the USD worth partly maintained through an equal quantity of its native token LUNA.
Particular particulars are sparse at this stage, nonetheless Kwon famous through Twitter on March 14 that Terra won’t promote its native asset LUNA to construct its reserves, and that extra data is coming quickly.
Kwon additionally bullishly emphasised that its stablecoin TerraUSD (UST) backed by $10 billion plus in BTC reserves will “open a brand new financial period of the Bitcoin commonplace.”
“P2P digital money that’s simpler to spend and extra enticing to carry” he added.
$UST with $10B+ in $BTC reserves will open a brand new financial period of the Bitcoin commonplace.
P2P digital money that’s simpler to spend and extra enticing to carry #btc
— Do Kwon (@stablekwon) March 14, 2022
Cointelegraph reached out to Kwon to see if the plans had been already in movement, or it was simply an thought being floated at this stage, and the founder merely responded:
“I don’t perceive the excellence, We’re already shopping for Bitcoin.”
When customers on Twitter requested Kwon what the BTC reserves can be used for, he responded that the funds can be used to backstop short-term UST redemptions and for a decentralized foreign exchange reserve.
In a tweet shortly after, Kwon additionally famous that: “We begin shopping for BTC and Twitter verifies me, I see you Jack,” in a nod to Jack Dorsey, who’s a Bitcoin bull and former CEO of Twitter.
Associated: LUNA flips Ethereum, becoming second-largest network for staked value
That is the second time this month Kwon has outlined plans to fortify the reserves backing Terra’s stablecoin.
After TFL donated 12 million LUNA to the Luna Basis Guard LFG on Friday (value round $1 billion at present costs) to assist progress of the Terra ecosystem and the sustainability of its stablecoins, Kwon outlined that the challenge will hold “rising reserves till it turns into mathematically unimaginable for idiots to assert de-peg danger for UST.”
In response to knowledge from Coingecko, the marketcap of UST at present sits at $15.12 billion.