One thing I’m not clear on: what oracle is deciding how much Luna is worth $1? How do you calculate a market price in a manner that the chain itself can rely on to function? I assume there is a smart contract doing this minting, but if that smart contract depends on an oracle…how smart is it, really?
In this case the Oracle is a consensus protocol where community nodes report the LUNA/UST rate.
But of course to make running such a node easy for users Terraform Labs distributes node software that reports a value chosen by Terraform. So in spite of the distributed consensus design the Oracle is just Terraform.
One thing I’m not clear on: what oracle is deciding how much Luna is worth $1? How do you calculate a market price in a manner that the chain itself can rely on to function? I assume there is a smart contract doing this minting, but if that smart contract depends on an oracle…how smart is it, really?