Terra Luna Classic (lunc) Price Index

Terra is a blockchain platform that facilitates payments using stablecoins that are algorithmically stabilized using Luna, the platform's native cryptocurrency. Terra intends to combine the stability of stablecoins with the benefits of blockchain technology, like reduced transaction fees and borderless transactions.

In comparison to fiat-backed stablecoins such as Tether and USD Coin, the price of Terra's stablecoins is maintained by the protocol. The system incorporates an automated market maker that enables the trading of Luna and Terra's stablecoins in both directions.

With numerous stablecoins pegged to various fiat currencies on the Terra platform, what is TerraSDT, which operates as an intermediary? It is a stablecoin whose value is determined by the International Monetary Fund's SDR currency basket.

When demand for stablecoins increases and transaction volume increases, the price of stablecoins exceeds the peg. To get it closer to peg, the protocol creates new stablecoin tokens and allows them to be sold for LUNA at a premium price.

On the other hand, if the price of stablecoins falls below the peg, additional LUNA is released. The market maker exchanges newly generated LUNA for Terra stablecoins, and the stablecoin's loss in value is dispersed to LUNA holders.

Terra is based on Tendermint, one of the earliest Proof-of-Stake (PoS) algorithms ever created. Not only do Tendermint smart contracts enable the Terra stablecoins and their collateralization, but they also provide on-chain governance and the stabilization of staking rewards.

The Terra Project's and Team's History

What are Terra's origins? After the cryptocurrency market boomed in 2017, Terra founders Daniel Shin and Do Kwon sought to build an international payment system on its back.

It took nearly a year and a half from its creation in early 2018 to the mainnet debut. Terra eventually made its debut in April 2019.

Terra Alliance, a group of 15 significant e-commerce companies (TMON, TiKi, Yanolja, Megabox, Musinsa, and others), funded the project. The platform held an initial coin offering (ICO), with Binance, Huobi Capital, and Coinbase Ventures participating.

Terraform Labs was founded to manage the pre-sale and to fund future development. The company is headquartered in Seoul, and the board of directors presently includes four executives: Do Kwon as CEO, Brian Jung as COO, Nicolas Platias as CFO, and Paul Kim as CFO.

Use Cases for LUNA.

LUNA is primarily utilized for the purposes indicated previously: staking (or delegation) and voting.

When LUNA is staked or delegated, the protocol bonds it and prevents it from being freely traded. Unbonding LUNA requires a 21-day vesting period, however moving bonded tokens between validators is quick.

The voting power of LUNA is mostly significant to active validators. However, consumers can participate by agreeing to delegate their share to a delegate.

Luna tokens fundamentally represent the Terra payment network's worth. Purchasing LUNA entails a long-term commitment to the protocol's development.

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