Terra is set to stake $240M LUNA and burn $1.4B UST to ‘stop the bleeding’. This was made known on Terra Money Twitter account as finer points of Do Kwon’s initial rescue plan was shared. His plan entails expanding the base pool, staking LUNA and burning UST.

In a tweet thread, the Terra rescue story continues to unfold as the Terra Money Twitter account went into greater detail regarding Do Kwon’s rescue PLAN for UST.

The thread exposes us to the initial strategy for Terra from May 11. Which is on Proposal 1164. The Proposal would balance the algorithmic stable coin Terra USD (UST) by expanding the base pool for the currency. This proposal has received 220,000 votes, at over 50%.

The TWEET thread also explains why they must burn more UST as there is a “supply overhang” of UST which explains LUNA’s price depreciation. It is believed that  staking $240M LUNA, will strengthen the network governance of the TERRA ecosystem.

The team team hopes that expanding the base pool and burning more of the coin will save UST. However, there is growing disbelief among investors that move will not be enough to save the project.

It will be interesting to see how things unfold from here.


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