LFG intends to compensate HODLers with its remaining reserves.

The Luna Foundation Guard has just posted a thread describing how its donations would be used during the UST de-pegging period. This means that the wait may be ended, and people may finally obtain definite answers to their questions.

The Luna Foundation Guard's reserves as of May 7 consisted of the following assets:

However, when the price of UST began to deviate from the $1 peg on May 8, the Foundation began changing its reserve into UST. It accomplished this by directly executing on-chain swaps and sending Bitcoin to a counterparty, allowing them to engage in large-scale, short-notice exchanges with it.

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On May 10, UST fell below the $0.7 mark.

According to the thread, the Foundation intends to use its remaining assets to recompense UST users, beginning with the smallest HODLers. At the moment, the team appears to be debating distribution options and intends to notify HODLers as soon as a decision is made.

In a Tweet on May 16, the Foundation also stated that "all assets will be returned to wallets tagged in dashboard.Ifg.org shortly – the Luna previously staked is unbonding, and will be returned in 20 days.”

Several experts in the crypto space, including Ethereum's founder Vitalik Buterin, have made proposals to the Foundation about how Terra should help its small investors by using funds from its reserves.

Because the Foundations appear to be implementing this advise, UST HODLers can now take a deep breath after weeks of waiting.