Do Kwon (founder and CEO, Terraform Labs), which creates the blockchain ecosystem that contains Luna, will be speaking on Friday.LUNA) and the TerraUSD stablecoin (UST), AnnoucedTFL had given 12 million LUNA or $1.1B to Luna Foundation Guard at the time that this article was published. LFG was established in January with the purpose of growing the Terra ecosystem, and ensuring the sustainability its stablecoins. Kwon noted that the funds, denominated in LUNA, will be burned to mint UST to grow the LFG‘s reserves:

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 LUNA tokens for UST when it’s market value is lower than its peg. In order to burn $1 in UST, $1 is made in LUNA.