Billions of Luna minted as supply grows 20-fold in four days

This has decimated the value of the token, which has fallen from $63 to less than $0.10.The supply of Luna has increased by more than 20 times over the last few days, as the effect of TerraUSD This massive supply increase has accelerated the fall in Luna’s price, which is down 99% in the last two days. And if the price of Luna continues to fall, its supply will also continue to increase.To understand what is going on, we need to know the relationship between Luna and UST.

At present, the value of UST is way below its peg, trading at just $0.57 as of 8:05 a.m. ET on Thursday. As a result, rather than sell on the market, UST holders are trying to cash out through Luna, using the mechanism designed to keep the peg in place. When this happens, more Luna is minted in response to the amount of UST being burned.

Yet now Luna’s price is much lower and large holders are cashing out, it’s causing a big increase in Luna’s supply. At Luna’s current price of $0.10, swapping 1 UST gets you 10 LUNA. So if someone wants to swap a large amount, say 100,000 UST, that would lead to the minting of 1 million LUNA. It has also led to an exponential increase in the supply of Luna. On Wednesday the supply of Luna increased from 386 million to 1.5 billion — up by 1.2 billion. So far today, the supply has already increased to 7.1 billion — up a further 5.5 billion.At the same time as this huge supply increase, the price keeps driving lower.

There was no max supply!

Preview of the US dollar in a few years.

Timccopeland This is lunatic..... so they can basically mint unlimited coin just like dogecoin and US dollars?

sounds like the US dollar '20 and '21

Timccopeland 10s of millions minted every min. I think it will reach 30bil supply for $ust to peg

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