Terraform Labs Donates Another $880M to Luna Foundation Guard

Terra (LUNA) blockchain developer Terraform Labs (TFL) has donated 10 million LUNAs to the Luna Foundation Guard, worth approximately $820 million at current prices.

The Luna Foundation Guard (LFG), a non-profit affiliated with Terra, is tasked with staking the network’s algorithmic stablecoin, Terra USD (UST), in order to keep it pegged to the U.S. dollar.

The latest announcement from Terraform Labs, made via Twitter on April 14, did not outline exactly what the funding would be used for. However, transaction data from Terra Finder shows that 7.8 million LUNAs (approximately $630 million) were quickly transferred out of LFG’s reserve wallet yesterday.

Given the recent performance of Terra, led by founder Do Kwon, who aims to amass $10 billion worth of bitcoin (BTC) to back UST’s reserves, some of the funds are expected to be used to build up its digital gold reserves. Another part of LUNA may be destroyed (a way to maintain the UST/USD peg.)

Considering that both TFL and LFG bought $100 million worth of AVAX last week, some additional Avalanche (AVAX) tokens may also be on the shopping list.

Following Terra's recent (and ongoing) Bitcoin (BTC) buying spree, which included buying around 2,500 BTC ($100 million) just two days ago, LFG Wallet has become the world's third largest holder of digital gold , second only to MicroStrategy and Tesla.

TFL donated LUNA worth $1.1 billion to LFG to be used to mint UST and increase reserves. A month later, LFG received its latest donation.

According to LFG’s accounting records, at the time of writing, its total reserve balance is $2.44 billion, of which BTC accounts for about 70% of $1.71 billion.

Despite Terra’s recent bullish moves, at the time of writing, LUNA’s price is down 7% over the past 30 days to $81.65.