Redemption Arc

Explore the limitations of redemption on Terra, i.e. the burn and mint mechanism. In what scenarios would the ability to burn & mint be insufficient for demand? Using data, illustrate occasions where these scenarios have occurred or come close to occuring.

The following diagram examines the volume of LUNA burned, based on:

- Most of Luna was cremated on November 18, 2021

- The highest number of Luna burned was on March 31, 2022

The following diagram examines the volume of UST burned, based on which:

- Most Luna was burned on December 11, 2021

- The highest number of Luna burned was on February 7, 2022

The chart below compares the price of Luna and the burning rate of UST, based on which it can be concluded that when the price of Luna decreases, the burning rate of UST changes, and when the price of Luna rises, the burning rate of UST also changes.

The following chart compares the price of Luna and the amount of Luna burning, based on which it can be concluded that when the price of Luna decreases, the rate of burning Luna changes, and when the price of Luna increases, the amount of Luna burns again, for example:

- When the price of Luna reached $ 42, on November 18, 2021, the volume of burning increased very much, and the same thing was repeated on April 5, 2022.

The chart below shows the total volume of Luna burned

Conclusion :

Based on the above review, it can be concluded that the market cap of Luna should always be higher than UST to perform the mint / burn process and also the liquidity of UST should always be high to perform mint / burn, because according to this dashboard it can be concluded that always with Downhill Luna Demand for UST is rising and UST must always be supported to maintain Luna's nature.

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