- UST will be the first internet native currency to carry out a Bitcoin standard in its monetary policy, Highlighted by Terra Founder Do Kwon.
- He thinks that the high-interest rate is a reflection of the level of returns decentralized finance (DeFi) can presently provide the investors.
- The founder is pretty confident about the future of Terra and the LUNA token, so much that he recently took on two bets of $11 million.
Do Kwon, Founder of Terra (LUNA), recently highlighted his views about Terra protocol’s decentralized stablecoin $UST. He expressed that it is going to be the first internet native currency to carry out a Bitcoin standard in its monetary policy.
Do Kwon spoke to a news website about Terra Protocol’s monetary policy and UST’s growth. This is partly powered by Anchor Protocol’s roughly 20% interest rate on depositing in the cryptocurrency.
Do Kwon thinks that the high-interest rate is a reflection of the level of returns decentralized finance (DeFi) can presently provide the investors.
According to him, It is not unnatural for currencies in growing economies to facilitate higher interest rates compared to mature, stable economics. And that he thinks it is going to set the thesis for what the Terra ecosystem would look like and its monetary policy.
The founder is pretty confident about the future of Terra and the LUNA token, so much that he recently took on two bets of $11 million on if the LUNA’s price would reach above $88 next year.
According to Sensei Algod, who expressed her criticism of the bet and called Terra and UST to be a Ponzi scheme, arguing that Anchor’s returns are printed out of thin air.
For the Terra Founder, if UST keeps growing, so will the price of LUNA, but he eventually sees Anchor’s returns drop to 7.5% to 12% as the DeFi space matures.
Via the LUNA sale and other ways, the Luna Guard Foundation has secured $2.2 billion to create a Bitcoin (BTC) reserve for the stablecoin with the aim of hitting $10 billion in the crowned cryptocurrency.
Data suggest that Terra has recently purchased $125 million worth BTC. And Do Kwon highlighted that UST is going to be the first internet native currency that implements that Bitcoin standard as part of its monetary policy.
Terra is a Proof-of-Stake blockchain protocol and a next-generation smart contracts platform that merges decentralized finance with the concept of Stablecoins. Terra’s native token is LUNA, which is utilized to keep an algorithmic stablecoin peg to the US Dollar.
The post $UST Plans to Be The First To Enforce Bitcoin Standard: Highlights Terra Founder appeared first on The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News.
Source: https://www.thecoinrepublic.com/2022/03/29/ust-plans-to-be-the-first-to-enforce-bitcoin-standard-highlights-terra-founder/