Do Kwon (founder and CEO, Terraform Labs) will be speaking Friday. This company develops the Blockchain ecosystem that includes Luna.LUNA) and the TerraUSD stablecoin (UST), AnnouncementTFL had given 12 million LUNA ($1.14 billion as of the publication date) to Luna Foundation Guard. LFG was established in January with the goal of growing the Terra ecosystem, and improving the sustainability its stablecoins. Kwon stated that the funds in LUNA will be used to create UST for the LFG’s reserve.

UST, an algorithmic stablecoin that has a theoretical exchange rate at 1:1 with the U.S. Dollar, is maintained in part by trading of/for LUNA tokens whenever its market value is lower than its peg. In order to burn $1 in UST, $1 is made in LUNA.