Introducing Terra Classic (LUNC): Revolutionizing Blockchain Transactions

Understanding Terra Classic (LUNC)

Terra Classic (LUNC) is a pioneering native token of the Terra blockchain, launched in August 2018. It predates the introduction of the new Terra chain, now known as Terra (LUNA), and operates with the original Terra ecosystem code.

The Role of Luna Classic (LUNC)

The primary function of the native token was to stabilize the price deviation of the algorithmic stablecoin, UST. UST, pegged to the US dollar, maintained its stability by adjusting its supply through the minting and burning of tokens. However, in May 2022, UST experienced a loss of peg, resulting in a collapse. The UST stablecoin algorithm led to a hyperinflationary spiral, generating trillions of LUNA tokens and causing a 99% reduction in the value of the original LUNA token.

Distinguishing Between Terra (LUNA) and Terra Classic (LUNC)

Both versions of the token, Terra (LUNA) and Terra Classic (LUNC), coexist following the implementation of the Terra Ecosystem Revival Plan 2. This plan involved splitting the current blockchain through forking, creating a new chain while retaining the previous version. As per the recovery plan, the existing chain and token have been rebranded as Terra Classic, while new LUNA tokens were airdropped to existing holders of LUNA and UST.

Meet the Visionaries Behind Terra Classic

Terra was founded in January 2018 by Daniel Shin and Do Kwon, with a vision to drive blockchain technology and cryptocurrency adoption by prioritizing price stability and usability. Do Kwon assumed the role of CEO of Terraform Labs, the entity behind Terra.

Before Terra, Daniel Shin co-founded and led Ticket Monster (TMON), a prominent South Korean e-commerce platform. Additionally, he co-founded Fast Track Asia, a startup incubator fostering fully functional companies.

Prior to Terra, Do Kwon founded and served as CEO of Anyfi, a startup specializing in decentralized wireless mesh networking solutions. His experience also includes roles as a software engineer for tech giants Microsoft and Apple.

What Sets Terra Classic Apart?

Terra distinguishes itself by utilizing fiat-pegged stablecoins, blending the advantages of cryptocurrencies with the stability of fiat currencies. It maintains its one-to-one peg through an algorithm that adjusts stablecoin supply based on demand. This mechanism incentivizes LUNA holders to swap LUNA and stablecoins at profitable exchange rates, facilitating the expansion or contraction of the stablecoin supply as needed.

Securing the Terra Network

The Terra blockchain employs a proof-of-stake consensus algorithm based on Tendermint. LUNA token holders stake their tokens as collateral to validate transactions, receiving rewards proportional to their staked amount. Additionally, tokenholders can delegate others to validate transactions on their behalf, sharing revenue generated. Terra offers guidance to validator nodes to uphold network security.

Where to Acquire Terra Classic (LUNC)

Terra Classic (LUNC) is available on major cryptocurrency exchanges, including Binance, KuCoin, Kraken, Huobi Global, PancakeSwap (V2), MEXC, and Gate.io, among others.

The Role of Terra Classic for UST

LUNA backs UST, and its value is adjusted based on the demand for UST. Upgrades such as Columbus-5 could lead to a highly deflationary LUNA supply in the long term. Conversely, the value of LUNA may decrease if UST is perceived as unstable. The temporary loss of UST peg following the Wormhole hack resulted in a price crash for LUNA.

Conclusion

Terra Classic (LUNC) stands at the forefront of blockchain innovation, offering stability and usability in a rapidly evolving digital landscape. With its unique approach to stablecoins and a robust ecosystem, Terra continues to reshape the future of global transactions.