Terra Classic (Wormhole)
What is Terra Classic (Wormhole)?
Terra Classic (LUNC) is a native token of the Terra blockchain that was released in August 2018. It is the first version of the token and works with the original code of the Terra ecosystem. Terra is a blockchain protocol that provides a price-stable global payment system powered by fiat-pegged stablecoins. Terra aims to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC), offering fast and affordable settlements.
Terra's development began in January 2018, and its mainnet officially launched in April 2019. As of September 2021, Terra offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies. Terra intends to roll out additional options.
On May 28, 2022, the genesis block of the new chain was launched to conduct future transactions under the name Terra (LUNA), and the original Terra Chain was rebranded as Terra Classic. The original native token - LUNA - has also been renamed as LUNA Classic (LUNC). Moreover, all network stablecoins (UST, KRT, EUT) have been renamed to Terra Classic stablecoins (USTC, KRTC, EUTC). There will be no Terra stablecoins on the new chain.
The recovery plan of Terra Classic was implemented through forking the current blockchain, creating a new chain in the ecosystem, and preserving the previous version. Both versions of the token have the right to exist. The new LUNA tokens were airdropped to existing holders of LUNA and UST before the depeg and subsequent crash occurred.
Terra Classic's founders are Daniel Shin and Do Kwon. Shin co-founded and headed Ticket Monster, a major South Korean e-commerce platform, and later co-founded Fast Track Asia, a startup incubator working with entrepreneurs to build fully functional companies. Kwon previously founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
Terra's unique feature is its use of fiat-pegged stablecoins, which combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. Terra keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand.
Terra has established partnerships with payments platforms, particularly in the Asia-Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korea-based mobile payments application, in which purchases made using the application on e-commerce platforms are processed via the Terra blockchain network. Each transaction is subject to (on average) a 2%–3% fee charged to the merchant.
Terra is supported by the Terra Alliance, a group of businesses and platforms advocating for the adoption of Terra. In February 2019, the company announced that e-commerce platforms from ten different countries, representing a user base of 45 million and a gross merchandise value of $25 billion, were members of the alliance.
In conclusion, Terra Classic (LUNC) is the first native token of the Terra blockchain, while Terra is a blockchain protocol that provides a price-stable global payment system powered by fiat-pegged stablecoins. Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC), offering fast and affordable settlements.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
Stay ahead of the competition by accessing high-quality data, advanced tools, and expert research.Try for Free