TechFlow news — Terra founder Do Kwon tweeted today that the alliance between Avalanche and Terra is the largest alliance in Web3 history. He explained: "First, the AVAX acquired by LFG will utilize the same automatic minting mechanism as BTC, providing substantial reserves for UST. UST can be minted and redeemed for AVAX on Avalanche. This means that as UST gains adoption on Avalanche, AVAX will become increasingly scarce, aligning with growth in L1 developers and users. Terraform Capital will also begin covering initial launch costs for projects within the AVAX ecosystem using UST, and will bear the expenses of joint audits conducted with our various security partners. We call on every Avalanche project to collaborate with the Terra community and grow together. Decentralized economies require decentralized capital, and we are excited to support Avalanche's rapid expansion over the coming years."
Additionally, he stated that Avalanche is currently one of the most exciting ecosystems in Web3; Web3 will operate across multiple chains, many of which will be Avalanche subnets.
Earlier reports indicated that LFG, the nonprofit organization within the Terra ecosystem, will purchase $100 million worth of AVAX as UST reserves.
