What is Terra?
Terra is a decentralized blockchain platform for algorithmic stablecoins, based on the Proof-of-Stake (PoS) mechanism built with Tendermint.
By using the LUNA staking token and a monetary algorithmic policy system, the Terra platform creates stablecoins capable of tracking the price movements of any fiat currency. Users can instantly spend, store and trade Terra stablecoins on the Terra platform.
The Terra ecosystem is rapidly expanding its network of decentralized applications, in order to increase the demand for Terra and the value of the LUNA coin.
What problems does Terra solve?
- The volatility of cryptocurrencies
- The transparency of stablecoins
- The application of stablecoins in practice
Terra’s solution
- To stabilize the value of stablecoins on Terra, users can exchange LUNA tokens for stablecoins and vice versa.
- Terra’s stabilization mechanism depends on user arbitrage activities. For example, when the price of TerraKRW drops to 0.95:1.00 against Korean Won in secondary markets, users can buy 100 TerraKRW for 95 KRW on exchanges, and then redeem these tokens on Terra to take 100 KRW worth of LUNA tokens. If the price of 1 TerraKRW is higher than 1 KRW, users can buy TerraKRW on the Terra platform and sell it on exchanges to make a profit.
- Under all economic conditions, Terra strives to secure rewards for network participants by using transaction fees and the LUNA burn rate as leverage.
Stablecoins on the Terra platform
Stablecoins on Terra are algorithmic stablecoins that track the prices of leading fiat currencies (USD, EUR, CNY, JPY, GBP, KRW and SDR); displayed as follows: TerraUSD, TerraEUR, TerraCNY, TerraJPY, TerraGBP, TerraKRW and TerraSDR.
Strengths of Terra stablecoins
- Convertible: to increase liquidity for stablecoins, users can easily convert at the equivalent rate of fiat currency. For example, the conversion rate of TerraUSD <> TerraKRW is equivalent to the exchange rate of USD <> KRW.
- Price stability: Terra uses an algorithm to adjust supply according to fluctuations in market demand.
- How to determine value: the value of stablecoins on Terra is determined by the vote of miners to the stability fund.
Terra’s Ecosystem
Currently, the Terra ecosystem has grown to about 80 projects. In addition, Terra has established an e-commerce alliance, including many regional names such as TMON, Pomelo, Tiki to bring the Terra stablecoins into e-commerce payment.
Token LUNA
LUNA is the token of the Terra platform. LUNA is used for stablecoin issuance, price stabilization mechanism, staking, and project governance.
Specifications
- Symbol: LUNA
- Blockchain: Terra
- Token Standard: CW-20
- Token type: utility, governance
- Total supply: 994,815,826 LUNA
- Circulating supply: 403,517,332 LUNA
Token Allocation
- Terra Alliance & Ecosystem & Strategic Partner: 40%
- Reserve fund: 20%
- Development team: 20%
- Private sale & Public sale: 20%
LUNA token Price today
How to buy LUNA
Terra (LUNA) has been listed on Attlas Exchange.
Traders can easily and securely buy LUNA with lowest fees on Attlas Exchange.
Step 1: Download the app and register an account
Step 2: Select Market on the toolbar at the main screen
Step 3: Select Spot
Step 4: Find LUNA
Step 5: Select Buy
Summary
This article is an overview of Terra (LUNA), not a financial advise.
Users are advised to do their own research before making any trading decisions.