Terra founder Do Kwon tweeted that the alliance between Avalanche AVAX 1.74% and Terra is the largest alliance ever made by Web3. He explained: First, AVAX acquired by LFG will use the same automatic coinage mechanism as BTC -0.13%-news/">BTC, providing a large reserve for UST. UST can be minted and redeemed for AVAX on Avalanche. This means that AVAX will become more scarce as UST becomes more popular on Avalanche, in line with the growth of L1 developers and users.
Terraform capital will also begin paying initial startup costs for projects using UST in the AVAX ecosystem, and will cover the cost of joint audits with our various security partners. We call on every Avalanche project to partner with the Terra community and grow together. A decentralized economy requires decentralized funds and is happy to work on Avalanche’s rapid expansion in the years to come.
Additionally, he stated that Avalanche is currently one of the most exciting ecosystems on Web3, which will run on multiple chains, many of which will be Avalanche subnets. Earlier news, Terra ecological non-profit organization LFG will purchase AVAX worth 100 million US dollars as a UST reserve.
