Terra

What is the token?

• Terra 2.0 (LUNA 2.0)

• emerged from a hard fork of the original Terra blockchain in response to the TerraUSD (UST) collapse in May 2022.

• The collapse led to significant market value loss for UST and LUNA, prompting a revival plan.

Tokenomics

• Total Supply:

• 1 billion LUNA tokens.

• Distribution:

• 35% to pre-debug LUNA holders, 30% to the community pool, 15% to post-attack UST holders, and 10% each to post-attack Luna holders and pre-attack aUST holders.

• Supply Mechanism:

• Burns LUNA tokens when supply exceeds 1 billion; mints new tokens to maintain stability.

Market Data

As of today #{today’s date}, the price of Terra is ₹38.14 INR or 0.4092 USD, with a 24-hour trading volume of 48356838.85 USD. The market capitalization for Terra is 290965159.43USD. The circulating supply is 709984438.92 Terra, with the total supply also being 1186707049 Terra.

Token Pros and Cons

Pros:

• Decentralized Finance (DeFi) Focus

• : Terra 2.0, and by extension LUNA, is now more focused on supporting and fostering a robust DeFi ecosystem, emphasizing LUNA’s role beyond just currency transactions.

• No Direct Ties to Stablecoins

• : The new LUNA is detached from any direct mechanism involving a stablecoin, representing a strategic shift away from the vulnerabilities exposed in the original Terra framework.

• Community Resilience

• : The rebirth of LUNA in Terra 2.0 symbolizes the community’s resilience and determination to learn from past mistakes, aiming for a more stable and sustainable growth trajectory.

Cons:

• Past Failure

• : LUNA is the successor to a coin that failed spectacularly, leading to significant financial losses for investors. This history may affect investor confidence and the coin’s stability[1].

• High Volatility

• : Cryptocurrency markets, including LUNA, are highly volatile, making it difficult to predict future prices accurately. This volatility can lead to substantial financial losses.

• Regulatory Risks

• : The collapse of the original Terra and its stablecoin UST has attracted regulatory scrutiny. Future regulatory actions could impact LUNA’s viability and investor sentiment.

• Market Skepticism

• : Despite the launch of Terra 2.0, many in the crypto community remain sceptical of LUNA’s long-term viability and the broader Terra ecosystem’s ability to recover from its past failures.

Why Should You Invest in the Coin

• LUNA 2.0 represents community resilience and learning from past mistakes.

• Importance of doing your research due to scepticism about long-term viability.

USP of the coin

• LUNA’s role in Terra protocol for stablecoin stability.

• Staking LUNA allows governance participation, validator roles, and earning rewards.

• LUNA can be burned to mint UST or local fiat-tied tokens.

The difference between LUNA Classic and LUNA

Luna Classic (LUNC):

• The original token of the Terra blockchain was launched in 2018.

• Closely tied to UST stablecoin with a minting/burning mechanism.

• Supply inflation post-UST de-pegging.

• It continues to exist with little activity.

Luna 2.0 (LUNA):

• Native token of new Terra blockchain, launched May 28, 2022.

• The finite supply is capped at 1 billion tokens.

• There is no direct stablecoin pairing at launch.

• Airdrop distribution to original LUNA and UST holders.

Founder and team background

• Founders: Do Kwon (CEO) and Daniel Shin.

• Terraform Labs was founded in 2018.

• Both founders have a background in entrepreneurship and software engineering/business.

ICO Price

• ICO Duration:

• January 30 to March 7, mainnet launch in April 2019.

• Token Sale Price:

• USD 0.80.

• Token Allocation:

• 20% for token sale.

• Funding Goal:

• Support the development and expansion of the Terra ecosystem.

• Investor Interest:

• Secured funding from notable blockchain funds and crypto exchanges.

Risks Associated with Investing in the Coin

• Potential for significant price fluctuations.

• Regulatory risks.

• Risk of collapse similar to UST in 2022.

• Reliance on algorithmic stablecoins for price stability could lead to complications.

• Collapse of TerraUSD (UST)

• : The original Terra ecosystem faced a catastrophic failure when its algorithmic stablecoin, UST, lost its peg to the US dollar. This destabilization caused massive inflation in the supply of LUNA, the original token, leading to a near-total loss in its market value.

• Hard Fork and Revival Plan

• : In response, the Terra community proposed a hard fork of the Terra blockchain, leading to the creation of Terra 2.0, or LUNA 2.0. This new blockchain was launched without the UST stablecoin mechanism, aiming to rebuild the ecosystem and restore investor confidence.

• Airdrop Distribution

• : The launch of LUNA 2.0 included an airdrop to holders of the original LUNA and UST tokens, now referred to as LUNA Classic (LUNC) and UST Classic (USTC), respectively. This airdrop aimed to compensate the community members affected by the collapse.

• Decentralized Finance (DeFi) Ecosystem

• : LUNA 2.0 continues to support a vibrant ecosystem of decentralized applications (dApps), although it has moved away from the algorithmic stablecoin model that characterized the original Terra blockchain.

• Proof of Stake (PoS) Consensus

• : The Terra LUNA 2.0 blockchain utilizes a Proof of Stake consensus mechanism, with validators playing a crucial role in securing the network and processing transactions.

• Governance and Community Involvement

• : LUNA 2.0 token holders can participate in governance decisions, influencing the development and direction of the Terra ecosystem.