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
“Is Terra a project for the future?” Yes. Its is impossible to have a negativ opinion on this extremly promising project, who clearly has its role in a 3.0 economy.
Despite its impresive growth of over 15 000% in one year (october 2020 to 2021), LUNA seems to still have a graceful future awaiting. Fitted with the, at the moment, best and most evolved stablecoin system of the market, one can think that Terra and its blockchain are conforting their head start in this niche.
Its evolved economy showed its strength without failures. Therefore conforting the confidence and enthusiasm of investors, who do not hesitate to lock their LUNA within the network, thus increasing security and robustness while getting rewards.