According to a high-ranking member of the Luna Foundation Guard (LFG), the foundation’s reserves are almost ready to be deployed, missing a few minor details.
The reserves will mostly be used to assist tiny wallets as well as builders and stakers on Terra.
Remi Tetot, a member of the LFG’s Governing Council, made the statements. Tetot stated that releasing the information was “breaking rank” in the LFG. In the aftermath of the recent crash, he also bemoaned the lack of regular communication with key Terra developers.
Tetot states that the LFG is currently awaiting confirmation from exchanges on the time and transactions to release the reserves, which are to be worth $1.5 billion.
He also states that an official statement would be out soon, but did not provide a specific date.
Will Terra benefit from the LFG reserve?
By the rate of depletion of the UST stablecoin, it appears doubtful that the reserves will be to protect the peg.
Terra receives advice to assist holders and stakers in recovering part of their value in several community proposals. Burning UST and LUNA tokens hasn’t helped prices much so far.
With Tetot’s remarks, it looks that helping developers and small holders will be a top concern, as Terra founder Do Kwon stated last week.
Ethereum founder Vitalik Buterin also called on Terra to first bail out its smallest holdings over the weekend.
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