The Luna Foundation Guard (LFG) revealed on Monday that the recent Terra crash, and its measures to support UST had wiped out most of its reserves.
Its holdings now stand at about $260 million- a far cry from the over $4 billion the LFG commanded less than two weeks ago.
It will now deploy this remaining capital towards repaying UST holders, with smallest wallets to be compensated first. But the LFG did not specify how this compensation will take place.
The LFG’s move comes amid growing calls from the Terra community to protect its most vulnerable holders. The move was also foreshadowed by a high-ranking member of the LFG.
LFG reserves decimated by Terra crash
The $260 million of reserves the LFG now holds will likely be insufficient to effectively repay all UST holders. Terra community proposals that called for redistribution of the reserves estimated their value to be much higher, around at least $1.5 billion.
