Introduction

UST is known as the stablecoin of the Terra Ecosystem. As it is known, the price of UST must be constant, so in the ecosystem, the mechanism of burning and minting Luna is used to keep the price of UST constant. In this dashboard, we check the burned luna volume weekly and check which week the most volume was burned.

Results and Analysis

First, we discuss the burned LUNA chart on a weekly basis. As can be seen from the chart, the most significant volume of burns occurred in the week of November 15, with the amount of 49.95 million Luna. In general, it can be said that during the second week (42.8 million Luna) and the third week of November, the largest volume of Luna was burned.

With the explanations given about the price dependence of the UST and burning LUNA, it seems that there is a relationship between these two. We examine this hypothesis here.

Let's compare the price chart of UST and the burned volume of Luna. We will find that at the beginning of 2021, it seems to be a relationship. Still, there is no significant relationship in the continuation.

As can be seen from the chart above, there is a strong correlation between Luna burning and Minting UST, and the trend in both graphs is the same. This shows the exact mechanism that keeps the price of UST constant in the Terra ecosystem.

Impact of News

According to a news item published on the Coindesk site on November 10, 2021, this news is a reason for the high volume of Luna burning. You can see the entire content from link bellow: https://www.coindesk.com/markets/2021/11/10/terra-passes-highly-anticipated-proposal-to-burn-nearly-89m-luna/

Based on this text, "The burning, or permanent removal of the tokens from circulation, will be executed over the next two weeks, with an initial burn of 520,000 LUNA that already took place Tuesday night", They have decided Burn a large volume of LUNA over the next two weeks.