On October 25, Do Kwon proposed to Burn all the 88,675,000 LUNA from the Community Pool to mint 3 - 4 billion UST.

The proposal was proposed in two governance votes :

, both of which passed with a resounding majority.

During the discussion phase in the Terra Agora forum post, most agreed with the proposal however were skeptical of the volume to be burnt.

The plan was to

  1. TFL to Initiate a CommunityPoolSpend Proposal to withdraw 88,675,000 Community Pool LUNA to the designated address:terra10kjnhhsgm4jfakr85673and3aw2y4a03598e0m, a wallet dedicated to performing swaps for this particular transaction. This proposal will be submitted on Wednesday night and will be in the voting period for two weeks thereafter.
  2. Swap all LUNA at the above address to UST over two weeks, initiating LUNA <> UST swaps every 800th block, equating to 520,000 LUNA minted to the equivalent UST every swap/800th block.
  3. Return all UST generated from the swaps back into the Community Pool.

Once this was done, this UST will be used to fund Ozone, the insurance protocol on Terra. Aside from this 88,675,000 LUNA, 10 Million LUNA was to be kept in Community Pool for future purposes.

Stats :

<aside> 🌔 88,674,998.659638 LUNA BURNT effectively worth 4,169,482,557.6288133 USD at the time of burn

</aside>

<aside> 🌒 2,705,987,177.0143323 UST MINTED effectively worth 2,705,749,456.39475 USD at the time of mint

</aside>

<aside> 🔥 1,462,932,738.466575 UST effectively worth 1,462,765,682.1344686 USD generated as swap fee

</aside>

<aside> 😓 34.91 % average slippage

</aside>

<aside> 😓 Swapping spread over 171 swaps, 136001 blocks , 15297 mins or 10 days 14 hours 57 minutes

</aside>

The proposal was passed by an overwhelming majority for two reasons :