Terra is a blockchain network that is designed for e-commerce and decentralized finance with the main utility and governance token, LUNA. It was released in 2018 by Do Kwon and Daniel Shin of Terraform Labs, and quickly became one of the most prominent projects in the crypto sphere.
In 2022, Terra went through a complete meltdown after $2 billion worth of token was unstaked, leading to the depeg of the USD-pegged stablecoin UST, the collapse of the blockchain, and the tanking of the whole crypto market. After the event, Do Kwon announced a recovery plan with a hard fork: the old Terra blockchain is now called Terra Classic and the collapsed LUNA token has become LUNC (LUNA Classic), while the new blockchain and its new token adopt the names Terra and LUNA (or Terra 2 and LUNA 2), respectively.
With the aim to facilitate e-commerce in real life, Terra has a wide range of fiat-backed stablecoins, including those for USD, EUR, GBP, KRW, JPY, etc., alongside a utility and governance token called LUNA. One special thing about these stablecoins is that they are not ensured by any reserves, but rather their prices are determined by "algorithm", hence the name algorithmic stablecoins. LUNA is used as a collateralization mechanism of these stablecoins, so it does not have a hard cap of total supply.
With this system in place, Terra provides a fast, cheap, and relatively-non volatile environment for decentralized commerce and finance.
At the moment, 1,004,262,701 LUNA tokens are in total supply. Among those, 127,475,474.31 are in circulation.
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