#5 - Tokenomics of Luna & Terra (& Anchor)

- Tokenomics 101 Terra/Luna/Anchor: https://tokenomicsdao.substack.com/p/tokenomics-101-terra-ecosystem?s=w

- Backing of stablecoins: https://tokenomicsdao.substack.com/p/what-stablecoins-are-used-for?s=w

- Freddie Raynolds - LUNA / UST critic:

FreddieRaynolds @FreddieRaynolds

Terra’s $UST was initially sold as “the most decentralized stablecoin”. Yesterday they announced the creation of a centralized foundation that plans to dump $LUNA to acquire forex reserves to defend the peg against attacks. This may mark the end of my long $LUNA short $UST trade.

FreddieRaynolds @FreddieRaynolds

@napgener Not many understand the implication of “building a decentralized forex reserve” with $LUNA but those are Do’s own words. That just means dumping it for $USDC, $BTC etc. https://t.co/bbx3z65Zly

- Terra death spiral:

José Maria Macedo @ZeMariaMacedo

5/ The risk is the so-called death spiral, depicted below Endogenous collateral creates reflexivity which just means a self-reinforcing positive loop; $UST contraction leads to $LUNA being minted and declining in price, which leads to fear and more $UST redemptions

- Terra backed by BTC breakdown:

Nicholas Platias 🌖 @nickplatias

Why are we inaugurating $UST ’s forex reserve with $BTC, and how do we grow from here? 🧵👇

Terra (UST) 🌍 Powered by LUNA 🌕 @terra_money

1/ The long awaited [REDACTED] 💎3 is here! 📣 The Luna Foundation Guard (LFG) has closed a $1 billion private token sale to establish a decentralized $UST Forex Reserve denominated in $BTC! 📣 🧵👇

- Anchor yield reserve charts: https://grafana.luigi311.com/d/7j96rRI7z/anchor?orgId=2&from=now-6M&to=now

- Arthur Hayes on Bitcoin: https://cryptohayes.medium.com/energy-cancelled-e9f9e53a50cd

- Luna price predictions: https://murrayrudd.substack.com/

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