![]() The documents from the Singaporean authority also revealed that as of 18 May, Shin held 51.2% of ownership and Kwon 22.4% of Chai Holdings, the parent company of Chai Corporation. However, after it was revealed from sources of the Singaporean Account and Corporate Regulatory Authority that Shin still held 8.3% of Terraform Labs ownership, Chai Corporation announced that Shin was not able to "finish liquidating his remaining ownership in time" despite having the same share of ownership as of 18 May. Shin and Chai Corporation, a Terra-ecosystem payment service company that he founded, announced on that Shin no longer held any ownership stock in Terraform Labs. ![]() Kwon later enlarged his stock pool to eleven shares, giving him approximately 91.7% ownership and Shin the remaining 8.3%. The founders Kwon and Shin each owned one share of Terraform Labs, giving each founder 50% of controlling power. The deal was originally proposed to the Terra community by Kwon, referring only to an unnamed "sports franchise in one of the four major American professional sports leagues", and the community agreed to pay $38.15 million for a five-year-long exclusive partnership. In February 2022, Terra and the Washington Nationals Major League Baseball team announced they had entered into a sponsorship agreement which provided stadium and television branding, as well as the rebranding of the Washington Nationals club and lounge to the "Terra Club". Bitcoin was the largest portion of the reserve assets, though LFG also held reserves in various other stablecoins and cryptocurrencies. As of 7 May, just before UST broke its peg, LFG held reserves of 80,394 bitcoin worth approximately $2.4 billion. Terraform Labs allocated a portion of the money obtained from UST sales to Luna Foundation Guard, to be used as reserves to stabilise the price of UST. In January 2022, the Luna Foundation Guard (LFG) was established as a non-profit based in Singapore, with Do Kwon serving as its director. ![]() Terraform Labs raised more than $200 million from investment firms such as Arrington Capital, Coinbase Ventures, Galaxy Digital and Lightspeed Venture Partners. In 2019, Terraform Labs launched its first cryptocurrency token. In 2018, Do Kwon and Daniel Shin (also known as Shin Hyun-sung ) co-founded Terraform Labs in Seoul, South Korea. Mirror Protocol was another project based on the Terra chain, which designed and offered financial derivatives that virtually "mirrored" actual listed stocks. Due to such a high-yielding mechanism of the Anchor Protocol, some critics raised concerns that Kwon's stablecoin model could function like a "ginormous Ponzi scheme". Investors who deposited UST in the Anchor Protocol were receiving a 19.45% yield that was paid out from Terra's reserves. The Anchor Protocol was a lending and borrowing protocol built on the Terra chain. This method uses a two-token system, whereby one token is supposed to remain stable (UST) while the other token (LUNA) is meant to absorb volatility. dollars instead, it was designed to maintain its peg through a complex model called a "burn and mint equilibrium". Luna serves as the primary backing asset for Terra, and is also used as a governance token for users to vote on Terra community proposals. Terra is a group of algorithmic stablecoins, named according to the currencies to which they are pegged-for example, TerraUSD (UST) is pegged to the U.S. The Terra blockchain has a fully-functional ecosystem of decentralized applications (or DApps), such as Anchor, Mirror, and Pylon, which utilised the stable-coin infrastructure of Terra. Several stablecoins are built atop the Terra protocol, including TerraUSD, which was the third largest stablecoin by market capitalisation before its collapse in May 2022. For consensus the Terra blockchain uses a proof-of-stake codesign. Terra is a blockchain that leverages fiat-pegged stablecoins to power a payment system. In May 2022, the Terra blockchain was temporarily halted after the collapse of the stablecoin TerraUSD (UST) and Luna, in an event that wiped out almost $45 billion in market capitalisation within a week. ![]() It is most known for its Terra stablecoin and the associated Luna reserve asset cryptocurrency. The project was created in 2018 by Terraform Labs, a startup co-founded by Do Kwon and Daniel Shin. Terra is a blockchain protocol and payment platform used for algorithmic stablecoins.
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