Taiki Maeda - Future of UST Decentralized Stablecoin Backed by Decentralized Reserves
Primer: Recently, Do Kwon and Terraform Labs have announced that they are partially backing UST with Bitcoin. What does this mean for UST and LUNA? Taiki Maeda shares his thoughts on the matter.
Relationship Of LUNA And UST
To mint 1 UST, you have to burn $1 worth of LUNA
As the market cap of UST goes up, this means that more LUNA is being burnt
Counter-Arguments To LUNA Being A Ponzi
Recently, Do Kwon and Terraform Labs are partially backing UST with Bitcoin
They are sitting with 3 billion worth of Bitcoin
People are speculating whether have they bought Bitcoin and are trying to frontrun them
Udi Wertheimer’s Twitter Spaces
Udi hosted a Twitter Spaces event with Do Kwon to understand how the mechanism is going to work
Acknowledging that a full LUNA backing for UST is unsustainable
Bitcoin improves UST’s chances of success
Taiki’s Thoughts
Bitcoin is bearish for LUNA as the amount of LUNA that’s going to be burnt will be going down
The LUNA community doesn’t really care if the burn rate for LUNA goes down. Their focus is on the growth of UST
A decentralized future requires a decentralized stablecoin
As Bitcoin backing for UST grows, there’s a possibility that UST becomes a better version of the Lightning Network
In 2010, Hal Finney, a core contributor to Bitcoin, mentioned that the fate of Bitcoin is to be a reserve currency, not a medium of exchange
Thinks that Bitcoiners are going to open up to it over time
Bullish on LUNA because it has a road to mainstream adoption
All information presented above is for educational purposes only and should not be taken as investment advice. Summaries are prepared by The Reading Ape. While reasonable efforts are made to provide accurate content, any errors in interpreting and summarizing the source material are ours alone. We disclaim any liability associated with the use of our content.