QUESTION

Find the week that the most volume of Luna burning happened. What caused this event? Show some effects of this burning had on Terra ecosystem by your opinion.

Here I have shown weekly amount of burned luna in 2021 and its peeked on 46th week that is 15 November 2021 to 21 November 2021

Almost 50,000,000 luna burned in that week

The peeked week is signifying the increasing demand for UST

LUNA is part of an algorithmic balancing system that helps stablecoins running on the Terra blockchain maintain parity with fiat currencies.

Terra preserves UST’s peg of USD through an elastic monetary policy. So when the value of UST goes above $1, Terra incentivizes its users to burn LUNA and mint UST.

The burning will also ultimately benefit LUNA stakers.

“LUNA stakers have less competition as [they] don’t have to compete against the community pool”