Terra’s stablecoins are algorithmic stablecoins, meaning that the protocol is designed to achieve price stability by using algorithms. For instance, the value of UST is equivalent to US$1 and should remain stable thanks to the LUNA token. When UST drops below US$1, LUNA supplements the UST supply to help it maintain its peg to the dollar.
Users who want to mint Terra stablecoins need to burn the dollar-equivalent amount of LUNA. A small portion of LUNA tokens used to mint stablecoins — also known as seigniorage — is sent to the community treasury, which makes minting stablecoins profitable for the network. It’s a process similar to the seigniorage from which central banks profit when they print money.
Luna went 22$ than 3$ in few day ,The system have been fixed some mechanic but the government of this coin will print money too much with ust and luna that may crash cypto market but nobody know the idea is good but need time to watch closely.
Day,week too much ob and upper band if they gonna make strong basis will much price around 60-70 first
Users who want to mint Terra stablecoins need to burn the dollar-equivalent amount of LUNA. A small portion of LUNA tokens used to mint stablecoins — also known as seigniorage — is sent to the community treasury, which makes minting stablecoins profitable for the network. It’s a process similar to the seigniorage from which central banks profit when they print money.
Luna went 22$ than 3$ in few day ,The system have been fixed some mechanic but the government of this coin will print money too much with ust and luna that may crash cypto market but nobody know the idea is good but need time to watch closely.
Day,week too much ob and upper band if they gonna make strong basis will much price around 60-70 first