Terra (UST) officially tweeted that the main peg pressure due to the current oversupply of UST is seriously diluting LUNA. Several steps are being taken to accelerate the achievement of this goal. First, the current Proposition 1164 would expand the base pool size and speed up the burn of UST to help narrow the on-chain spread.
The TFL has also launched three other emergency operations:
- Propose to destroy the remaining UST in the community pool.
- TFL will burn the remaining 371 million UST across the chain on Ethereum.
- TFL just pledged 240 million LUNA to defend against cyber governance attacks. The full Agora proposal to destroy the remaining UST in the community pool (including the proposal to destroy the cross-chain UST) will be launched soon.
Overall, following the execution of the three proposed projects above, approximately 1,388,233,195 USTs will be eliminated from the UST supply, which equates to approximately 11% of the outstanding supply.