What is Terra (LUNA) ?

Terra LUNA Official Logo
Terra LUNA Official Logo

LUNA is a cryptocurrency that is mined to power Terra’s DPoS blockchain. Terra is a price-stable cryptocurrency designed for mass adoption. It builds financial infrastructure for the next generation of decentralized applications. Terra is backed by Luna, a decentralized asset that derives its value from transaction fees collected on the Terra network. Miners therefore provide stability and security. In exchange, the protocol offers stable mining rewards from transaction fees and seigniorage in all economic conditions. Terra uses seigniorage created by its minting operations as transaction stimulus, thereby facilitating adoption. Unlike other proof-of-stake networks like EOS, Terra doesn’t inflate its circulating supply to reward its stakeholders. Instead, they are paid with “Terra tax,” which is a percentage of all the transactions happening within the network. Another cool feature of Terra’s staking mechanism is that you don’t need to actively participate in it. You can simply delegate some of your Luna tokens to an active validator and earn passive income. So, to keep it simple, holders have an opportunity to earn rewards in a system, which has grown impressively over time, without having to participate in it actively.

Original author – Danial Shin
Initial release – April 2019
Development status – Active
Website – terra.money

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