As many of you know, history was made in the crypto space on the week of May 9th, 2022.
LUNA was proposed to serve as a collateral asset to maintain UST’s 1 dollar peg, according to Terra’s monetary policy which both inflates and deflates. Therefore, when the value of UST is above 1 dollar, the Terra protocol incentivizes users to burn LUNA and mint UST. Conversely, when UST’s price drops below 1 dollar, the protocol rewards users for burning UST and minting LUNA.
Fortunately, the disaster had no effect on the Sigmadex treasury and operations will continue as planned as we approach a launch strategy and decision through our community, advisors and team members.
Although the market has been hit with turbulence from all sides, we are confident in our community decision making and our teams ability to deliver a robust and usable product. We will take advantage of this market state and use systematic structure to push ourselves to the top.
We hope everyone that has been affected by this incident will prevail over time and the team at Terra figures out a way to compensate the many people who put their hard earned capital into their ecosystem.
In the meantime, the Sigmadex team will explore potential ways of contributing positively to the many victims in good faith.