Q182.

Over a time period of your choosing, display the following:

-daily minted UST and burned LUNA -daily burned UST and minted LUNA

What are some trends you can observe for each of the charts above?

credit to: JP12

burning mechanism for luna

what is the circulating of tokens ?

the total circulating tokens existing on a network , not burned and also not staked tokens and the below chart show us the circulating luna over recent 3 monthes

According to the mentioned mechanism, whenever UST Stable Coin is issued, the equivalent of Luna token must be burned. This creates a correlation between the two assets. Whenever demand for UST rises, the price of LUNA will rise.

The first step is to explain how Luna and Tera work As mentioned, UST is the main currency of Terra network and it is backed by Luna currency, which has an interesting relationship between them.

You know that the backing of any currency is something, for example, the backing of tetra is the dollars stored in the tether bank. The backing of mim are LP tokens.the backing of UST are the luna tokens which can burned or not to make ust stable as 1$ value . It can often be worth 1$

some reasons for the answering why luna has decreased less in price and the mechanism:

As we know, stable coins are one of the main needs of the cryptocurrency market and people are looking for stable coins that are decentralized and backed by something .so that their value will remain constant in the fall or rise in the market.

As people become more familiar with cryptocurrency, the amount of stable coins must inevitably increase, and this means another thing for the Terra network.Basically, increasing tera means burning more lunas and increasing the price of lunas over time

In the below diagrams , we examine the two factors mentioned.

First, the volume of ust burned and converted to luna on a daily basis.

Secondly, Luna's volume is burned and converted to ust on a daily basis and the two are compared to each other

Looking at the two above charts , we can conclude that the volume of ust that is burned is more than Luna

Now let's take a look at the changes in each

These changes can help us become more familiar with the mechanisms designed in the Terra ecosystem.