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Oh they had this crazy plan that involved staking and seinorage of two different coins (Terra and Luna).
You should read their whitepaper, you might get a kick out of it. It's pretty bonkers:
https://github.com/terra-money/documentation/blob/master/white-paper/terra-v1.1.pdf
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They soak up their own currency when it's getting too cheap and dump more on the market when it's too expensive.
What if they run out of the currency they need to buy it with?