Dear Terrans, many have been asking to share our thoughts on Facebook's Libra, so here it is.
20 Jun 2019, 02:25
Dear Terrans, many have been asking to share our thoughts on Facebook’s Libra, so here it is! Facebook published its mission for Libra, and it sounds very similar to the one we set forth to accomplish a year ago — build a stable and widely adopted global currency and an open financial system. In that light, we see Libra as a strong validation for the innovation crypto can bring. And we were delighted to see so many similarities in their token design. But one critical aspect that Libra lacks is what we consider to be Terra’s key competitive advantage relative to fiat: seigniorage. We’ve figured out a growth hack and predict that it will be expensive for Libra to create strong user incentives without seigniorage. Read more in our most recent blog post: