Skip to main content

Terra Founder Hints at $3 Billion BTC Purchase, Explains New Bitcoin-Linked Tokenomics

Terra

Terra founder Do Kwon hinted at a future purchase of $3 billion worth of bitcoin to supply the reserves of the protocol in a recent Twitter Space shared with bitcoin enthusiast Udi Wertheimer. In the same Space, Do Kwon explained the new mechanics that the Terra ecosystem is introducing in order to use bitcoin as collateral for its flagship decentralized stablecoin, UST.

Do Kwon Directs the Terra Ecosystem to Bitcoin

Do Kwon, founder of Terra and Terraform Labs, made some important announcements regarding the future of the Terra ecosystem and its tokens in a Twitter Space hosted by Udi Wertheimer. One of these announcements has to do with the inclusion of new token mechanics that take into consideration some form of bitcoin in the Terra ecosystem. In this regard, Kwon announced Terra is working toward bringing a form of tokenized bitcoin to the Terra blockchain in the most decentralized form possible.

Kwon also explained that with the inclusion of bitcoin, UST would become a hybrid stablecoin, allowing users to exchange $1 worth of UST for $0.99 worth of BTC. This would effectively allow users to redeem BTC by using UST for a premium of 1%, almost in the same way that LUNA is being used right now. Kwon clarified that these mechanics will be explained in the near future in a more detailed way.

When asked about why Terra chose bitcoin as a reserve asset, Kwon stated:

I mean a couple of reasons here, but put simply, bitcoin is the only hard reserve asset that’s been proven out of the digital currencies… It is very difficult for somebody in crypto to question bitcoin.

Bitcoin Explosion

Kwon expects this new tokenized version of bitcoin in the Terra ecosystem to become the de facto reserve currency of many protocols built on top of the chain, expanding to be part of every smart contract application that holds any treasury. In light of this, Kwon announced some numbers regarding the amount of bitcoin Terra will purchase in the short term. The Terraform Labs CEO stated the company has a budget to buy $3 billion worth of bitcoin in the short term and announced that most of this bitcoin has not been bought yet.

Do Kwon concluded by announcing that the protocol, through the Luna Foundation Guard, plans to become a regular buyer of bitcoin for the aforementioned purpose.

What do you think about the announcements made by Do Kwon in Udi Wertheimer’s Space? Tell us in the comments section below.



from Bitcoin News https://ift.tt/LZRI6uG
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more