Terra (LUNA) has maintained a bullish trajectory for most part of the last year, registering an impressive 7500%+ growth: The protocol received further boost from the launch of Luna Foundation Guard (LFG) recently.
Launched in Apr 2018 by Do Kwon and Daniel Shin, Terra (LUNA), a blockchain protocol which utilises an array of fiat-pegged stablecoins like TerraUSD (UST) and TerraKRW (KRT) to power the global payment systems, has shown a significant growth in value over the past one year.
Terra’s native token LUNA is trading at $68.52 at the time of reporting, showing an impressive year-on-year growth of over 7500%. It was valued at $0.90 on Jan 23, 2021 and witnessed an all-time high (ATH) of $103.33 on Dec 27, 2021.
With a current market cap of $27.39 billion, Terra is presently amongst the top 10 cryptocurrencies (based on market capitalisation) in the world.
LUNA/USD Daily Chart. Source: TradingView
The main reason behind its consistent growth and popularity over the past one year is how Terra protocol maintains its one-to-one peg via an algorithm which automatically balances the demand-supply of its stablecoins. It accomplishes this by incentivising LUNA token holders for making LUNA-stablecoin swaps at attractive exchange rates, to either contract or expand the concerned stablecoin’s supply. This is quite unlike other stablecoins which are primarily backed by the pegged fiat currency’s fixed deposits, or are over-collateralised in some other DeFi asset. Additionally, Terra has also formed multiple partnerships since its launch, especially in the Asia-Pacific market.
Launch of the Luna Foundation Guard
Do Kwon, the Co-founder and CEO of Terraform Labs (company behind Terra), recently announced the formation of Luna Foundation Guard (LFG) via a tweet.
Luna Foundation Guard (LFG) is a Singapore-based non-profit organisation which will focus on creation and facilitation of greater economic sustainability, security and sovereignty for the open-source ecosystem that aids construction and promotion of a genuine decentralised economy.
It will support the Terra protocol by safeguarding the adoption and stability of the latter’s flagship stablecoin, TerraUSD (UST). The newly formed body will focus its energies on factors expected to fuel Terra’s further advancement in the future, a reason why its creation has enabled LUNA to maintain an uptrend even in bearish market conditions.
Do Kwon will himself lead the LFG initiatives, supported by Nicholas Platias (founding member) and multiple governing council members. Terraform Labs will provide LFG an initial allocation of 50 million LUNA for this purpose.
In a statement issued to the press, Do Kwon said, “The LFG mandate to continuously support the peg stability of Terra’s stablecoins and ecosystem development powered by Terra’s best builders offers a new pathway for the growth and sustainability of decentralized money. A decentralized economy needs decentralized money, and LFG provides another nexus of resources to achieve that goal.”