Terra (LUNA): What is it?
Terra Luna by Crypto Nation – 20 October 2021
By Crypto Nation – 20 October 2021
Terra crypto card summary :
Fundamentals of Terra
- Name: Terra
- Symbol: LUNA
- Type: Store of Value, DeFi, Payments
- Consensus: Delegated Proof of Stake (DPoS)
- Year of creation: 2018
- Fonders: Daniel Shin et Do Kwon
- Homepage: https://terra.money/
- Mainnet: Yes- https://finder.terra.money/
- Whitepaper: https://docs.terra.money/
- Code: https://github.com/terra-project
- Twitter: @terra_money
Terra market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the project Terra?
The main objectiv of Terra is the emission of stablecoins, in order to simplify worldwide payments thanks to digital assets.
The economical management of Terra is quite complex for a crypto-asset, it converges to the economical concepts we all know.
Without getting too deep into the details, its system reflects the seigniorage monetary system, which in the end uses the profits made on the stablecoin to finance the projects on the same network.
The origins of the project
Terra was founded in january 2018 by Daniel Shin and Do Kwon. The aim of the founders was to design a blockchain protocol allowing price stability within the crypto economy.
Daniel Shin is known as the founder and CEO of Ticket Monster (TMON), a major e-commerce platform in South Korea. Later on he co-founded Fast Track Asia, a start-up incubator.
Do Kwon first worked for Apple and then Microsoft, before founding Anyfi, a start-up focusing on decentralized networks.
What is its use?
Its token, LUNA, has a governance role and foremost, ensures the stability of the stablecoins.
For example, when the price of TerraUSD (stablecoin) falls at 0.95$, it is possible to buy 1 TerraUSD for 1$ of LUNA.
Therfore the main advantage of the project is clear, allowing it to be one of the privileged networks for stablecoins transactions.
The management of the economy (update: 03/10/2021)
The LUNA offers a maximum of 970 millions tokens. If this amount is exceeded, tokens are buned until the supply is balanced again. Currently 400 millions are in circulation.
New tokens are emitted by the protocols algorythm, in accordance with the needs.
Almost 35% of the total of LUNA is currently staked. The annual interest rate is rougly 3%.
Diagram of the evolution of the cryptoactive
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your Cardano (ADA) via various solutions:
- Terra Station, the officially recommended wallet for storing Terra’s blockchain assets.
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
Terra’s system unfortunately failed in May 2022…and is becoming one of the biggest disappointments in the cryptosphere. It is better to move on now.