The Luna Foundation Guard has received another ten million LUNA tokens from Terraform Labs, following a $1.1 billion donation last month.
Terraform Labs (TFL), the developer of the Terra (LUNA) blockchain, has gifted the Luna Foundation Guard ten million LUNA, which is worth approximately $820 million at current prices.
The Luna Foundation Guard (LFG) is a Terra-affiliated nonprofit organization tasked with collateralizing the network’s algorithmic stablecoin Terra USD (UST) to maintain its peg to the US dollar.
Terraform Labs’ most recent announcement, made via Twitter on April 14, did not specify what the funds would be used for. However, Terra Finder transaction data indicates that 7.8 million LUNA (approximately $630 million) were quickly transferred out of the LFG’s reserve wallet yesterday.
Given Terra’s recent development, led by founder Do Kwon, who has set a goal of amassing $10 billion in Bitcoin (BTC) to back the UST’s reserves, many anticipate that a portion of the funds will be used to build Terra’s digital gold stash. Another portion of LUNA may be burned (to maintain the UST/USD peg.)
Additional Avalanche (AVAX) tokens may also be on the shopping list, given that both TFL and LFG recently purchased $100 million worth of AVAX.
Following Terra’s recent (and ongoing) Bitcoin (BTC) buying spree, which included the purchase of approximately 2,500 BTC ($100 million) just two days ago, the wallet used by LFG has surpassed MicroStrategy and Tesla to become the world’s third-largest holder of digital gold.
The latest donation to the LFG comes less than a month after TFL gifted the LFG $1.1 billion in LUNA to be burned to mint UST and increase its reserves.
According to the LFG’s accounting records, its total reserve balance is currently $2.44 billion, with BTC accounting for roughly 70% of that total, at $1.71 billion.
Despite recent bullish developments with Terra, LUNA’s price has fallen 7% in the last 30 days to $81.65 at the time of writing.
