1/ Announcing the community content bounty program’s winners and the new bounties for the next week!
First, we’d like to thank everyone for their submissions. The quality across the board was excellent, and we encourage writers who didn’t win to keep sending submissions.
5/ We will be reaching out to the winning authors individually on Telegram to collect their Terra UST addresses to disperse the first round of prizes. The winning posts will also be posted on Learn Terra soon.
Now, onto this week’s bounties!
6/ Below, you can find the individual links to the next 3 bounties, which are hosted on Learn Terra’s website under the “Bounties” tab. Please make sure to share the relevant link based on the specific bounty’s directions to the Google Form below.
9/ Bounty #6 -- Earn up to $500 for providing a video walkthrough, video guide, animated explainer, or other creative visual work about Pylon Protocol.
10/ We encourage creativity and approaching topics from unique angles that you think would resonate well with the community. Remember to share your submissions by 5 PM PST on Wednesday, 07/14 to be considered.
11/ Finally, we’re still looking for editors to help with feedback and curating content submissions, so if you’re interested, please reach out to ecosystem@terra.money or hello@terrabit.es.
Good luck on this week’s bounties, we’re looking forward to your submissions!
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1/ In our fourth issue of Terra’s Project Spotlight, we’re thrilled to introduce @pylon_protocol -- a yield-based saving, payment, and launchpad platform built on Terra.
2/ Pylon is the 5th app incubated by the TFL team, following Chai, Mirror, Anchor, & Nebula. Pylon similarly infuses itself with the theme of “looking outwards,” where adoption, accessibility, & use cases that appeal to the average user are powered by Terra’s DeFi ecosystem
3/ The idea enshrined in Pylon is to swap “payments-in-principal with payments-in-cashflow” using Anchor’s high-yield, low-volatility deposit rate.
Anchor’s ability to unlock new dimensions for user engagement with products and services is powerful.
1/ Terra’s integration with @WalletConnect — open-source protocol designed for dapp<>wallet connectivity — is now live, enabling users to access full Anchor, Mirror & Terra Bridge functionality through Terra Station.
2/ By deep linking each web application with Terra Station mobile, @WalletConnect enables users to simply manage their assets across the entire Terra ecosystem on the go.
Download Terra Station mobile & connect your wallet on the front page of the Anchor/Mirror/Bridge web app👇
1/ A great video clarifying by YouTuber CryptoCents on some of the misconceptions around TerraUSD ($UST) and how the broader Terra economy works.
Check out his profile and give this man a follow #LUNAtics.
2/ “LUNA is not an asset that explicitly collateralizes UST -- it simply absorbs the short-term volatility of UST.”
UST is backed by the demand for the Terra ecosystem, not explicitly the asset price of LUNA collateralizing the system.
3/ Hence, why an FDNV of LUNA approaching the outstanding liabilities of circulating UST does not trigger a “death spiral” bank run characteristic of traditional endogenous collateral models.
1/ Extreme volatility produced a series of collateral effects across the Terra ecosystem, primarily derived from the short-term peg deviation of $UST and its impact on the volatility of $LUNA and levers of the Terra protocol. There’s a lot to unpack, so let’s dive in 👇
2/ Let’s start with the basics. The Terra protocol mechanism is quite simple:
When the supply of Terra stablecoins (like UST) goes up, the LUNA supply goes down.
When the supply of Terra stablecoins goes down, the LUNA supply goes up.
3/ As an algorithmic stablecoin network, Terra is akin to a decentralized, open-source central bank.
2/ With the threshold currently passed and roughly 96% of votes reporting "No," the community pool will be swapped out for $UST after Columbus-5 and used to bootstrap Ozone. More details will follow after the conclusion of the current voting period.
3/ The community's decision reflects the idea that community-funded growth from the treasury for a blossoming DeFi ecosystem on Terra is the optimal path forward for the network to maximize value and adoption in the long term.
For the first time in Terra’s history, seigniorage distribution to the validators/delegators and the community pool has occurred due to the sharp increase in UST demand -- equating to 24 million LUNA. This is NOT newly minted LUNA.
For some context, the Terra blockchain records "decreased LUNA supply during a week" as accrued seigniorage. The seigniorage is spent in two ways:
1. Oracle rewards: distributed to validators + delegators as staking rewards => increase staking rewards (released over 52 weeks).
2. Community pool: the treasury for the community.