Do Kwon Calls every Avalanche AVAX project to Engage with Terra Community to Grow Together

Do Kwon:  All your AVAX are ours.  Today, none can deny that

Avalanche is one of the most exciting ecosystems in web3. It is currently one of the most heavily trafficked L1s with hundreds of apps spanning DeFi and gaming. The numbers are great:  Total Value Locked is at $10.9 Billion.

But the future is even brighter for avalanche. Every bull market we are reminded of a need for a horizontally scaled future, as blockspace gets clogged and monolithic chains struggle. Web3 will run on multiple chains, and many of those chains will be Avalanche subnets.

The alliance between Avalanche AVAX and Terra Money is the biggest ever formed in web3. Details?

First, the AVAX acquired by LFG will be used to provision a large reserve against UST using the automated mint mechanism identical to one designed for BTC. UST will be able to be minted and redeemed against AVAX, on Avalanche. UST becomes Avax native.

This means that as UST adoption grows on Avalanche, AVAX becomes more scarce – aligning the growth of the stablecoin with the L1’s developers and users.

Terraformlabs will also start to cover initial bootstrapping costs for select projects that use UST in the Avax ecosystem. Costs of audit in consortium with our various security partners will be covered.

TFL will also put boots on the ground to grow Avalanche – Anchor Protocol has touched ground recently, and Nebula Protocol will create a cluster of top assets in the Avalanhce ecosystem etc.

We call on every Avalanche AVAX project to engage with the Terra community to grow together. Decentralized economies need decentralized money, and happy to work on blitzscaling Avalanche’s for the years to come.

Random Reflections from Community:

What does this mean for LUNA if we keep chipping away at its key value prop? How is this chipping away it’s value prop? More UST adoption = scarcer LUNA.

Do Kwon probably means that AVAX can soon be minted for UST, taking away LUNA as the sole minter and beneficiary of newly minted UST.

Even if LUNA is not the sole minter, you reduce risk vectors this way and if UST is de-facto, it still benefits LUNA holders indirectly if UST has more use cases outside of the network, even if there isn’t a direct mint relationship?

However, it is concerning, because if this becomes ongoing and we do the same with another 10-20 or more chains. UST will continue to do well and grow but unless it’s minted in Terra, LUNA holders wouldn’t fully benefit from it.

LUNA would need to continue competing on protocols. What is interesting in this relationship is it looks *active* – i.e – all partnerships have a component of working together to buidl.

There is value in reducing vectors – even for LUNA holders – bullish on what Terra eco is doing and Terra is early in this too.