A senior member of the Luna Foundation Guard (LFG) said Monday that the foundation’s reserves are almost ready to be deployed, save for a few technicalities.

The reserves will be largely focused on helping small wallets and supporting builders and strikers on Terra.

The pronunciations were created by Remi Tetot, a member of the LFG’s board of directors. Tetot said he “broke rank” in the LFG to release the information. He also denounced the lack of regular communication by key Terra developers in the wake of the recent crash.

Tetot said the LFG is now awaiting confirmation from exchanges on the timing and transactions needed to release the reserves, which are estimated to be about $1.5 billion.

He also said an official statement will be issued soon, but did not specify an exact date.

How will the LFG reserve help Terra?

Given the rate at which the UST stablecoin has been depleted, it seems unlikely that the reserves will be used to protect the peg.

Several community proposals have asked Terra to help keep holders and strikers regain some of their value. So far, the burning of UST and LUNA tokens has done little to support prices.

With Tetot’s comments, it looks like supporting developers and small holders will be a priority — something Terra founder Do Kwon also posited last week.

Over the weekend, Ethereum founder Vitalik Buterin also called on Terra to rescue his smallest holders first.

Two Popular Plans To Save UST, LUNA Holders

Currently, two Terra board proposals seem to be preferred for returning some value to stakeholders. These are the Revival Plan and the FatMan Plan.

The Revival Plan calls for a hard fork into the Terra blockchain resulting in the creation of 1 billion Terra 2.0 tokens, which will then be distributed to developers, holders and investors in the project.

The FatMan plan calls for the LFG to distribute its $1.5 billion reserves to all UST holders prior to de-pegging so that they at least get some value back from their investment.

But the community has yet to vote on both proposals. Terraform Labs and Do Kwon also shared some details about the path forward.

With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can play him video games or watch Seinfeld reruns. You can reach him at [email protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.





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