What is Terra (LUNA)?

What is Terra (LUNA)?
Terra (LUNA) is the name given to the new blockchain as a result of the fork of the Terra blockchain in May 2022. It is also called Terra 2.0. Terra is a decentralized blockchain protocol that allows blockchain users to create stablecoins . The Terra blockchain allows its users to instantly create, accumulate, buy, sell or exchange Terra stablecoins.

Terra (LUNA) protocol is a protocol created to create stablecoins indexed to fiat currencies in the cryptocurrency world. By taking advantage of Terra's blockchain infrastructure, you can quickly and bilaterally create stable cryptocurrencies through smart contracts or convert your existing stable cryptocurrencies into assets equivalent to USD.

Delegated Proof-of-Stake (DPoS) algorithm is used as the consensus mechanism in the Terra (LUNA) network. This is a more efficient and democratic version of the Proof-of-Stake (PoS) mechanism.

LUNA coin project
The Terra protocol consisted of two main cryptocurrencies: Terra stablecoins and LUNA coin. The largest stablecoin on Terra is USTC (USTC before the hard fork), whose price is theoretically equal to the US dollar.

The Terra (LUNA) blockchain emerged within the scope of a recovery plan after the crisis that occurred with the deterioration of price stability at 1 USD on the USTC side in May 2022. According to this plan, LUNA coins on the new blockchain with Terra 2.0 were distributed to those who held LUNA and UST before the USTC crisis and before the hard fork.

LUNA Crisis
LUNA coin experienced a serious crisis in May 2022 with the deterioration of price balance on the USTC side and affected the entire cryptocurrency market. With the hard fork to save Terra after the crisis, Terra 2.0, or today's LUNA coin, was born.

Before the hard fork, LUNA coin served as a native staking coin that absorbed the price volatility of stablecoins issued on Terra. Before the hard fork, users could create stable cryptocurrencies such as USTC by burning the LUNA coins they had on the Terra platform.

For example, to create 1 USTC, 1 USD worth of LUNA coins must be burned. Since the amount in circulation decreases with each LUNA coin burned, the LUNA price is positively affected by this process. On the contrary, users can convert 1 USTC token into LUNA coin worth 1 USD at the current market price. In this case, negative pressure may occur on the price as the number of LUNA coins in circulation increases. Do Known, the founder of Terra and the manager of the hard fork, announced that collateral will now be held against stable cryptocurrencies that will be created algorithmically on the new blockchain created with Terra 2.0.

After this serious loss of value and trust in the old LUNA project, namely LUNC, the founders of the project went to hard fork in block number 7790000 in May 2022 and created a new LUNA blockchain with Terra 2.0.

Who are the founders of the Terra (LUNA) project?
The Terra (LUNA) project was founded in 2018 by Do Kwon and Daniel Shin from Terra form Labs. However, with the hard fork of the project after the crisis on the USTC side in May 2022, the blockchain was revived with Terra 2.0.

Do Kwon, who is also the CEO of Terra form Labs, is known for his investments and initiatives in the blockchain field. Daniel Shin is known as the founder and CEO of Chai, an important payment company in Asia, as well as the Terra (LUNA) project.

LUNA coin statistics
With Terra 2.0, the Terra blockchain was restarted after the fork with a total supply of 1,000,000,000 units. Terra blockchain has distributed the new LUNA coin according to the screenshots taken after the crisis and attack. On the attacked Terra blockchain (now known as Terra Classic (LUNC), the pre-attack screenshot was taken on May 7, 2022, at block number 7544910, and the post-attack screenshot was taken on May 27, 2022, at block number 7790000).

Terra (LUNA), which was restarted in May 2022 with a supply of 1,000,000,000, is explained as follows:

30%: Community Pools
35%: LUNA owners before the attack
10%: UST holders before the attack
10%: LUNA owners after the attack
15%: Post-attack UST holders
The new LUNA coin, 70 percent of which is distributed to Terra Classic and USTC owners, will be distributed to users monthly starting from May 2022, with a total distribution period of 2 years.

Terra (LUNA) Bifurcation
Terra (LUNA) continues its life with the blockchain called Terra 2.0, which emerged with the hard fork made by the main developer team in May 2022. The fork was supported by many cryptocurrency platforms and the new blockchain was successfully activated.

How to buy LUNA coin?
LUNA coin can be bought and sold on reliable cryptocurrency exchanges. You can also trade in LUNA TRY parity by opening an account at Bitlo.

Terra (LUNA) Frequently Asked Questions
What is Terra (LUNA)?

Terra (LUNA) is the name given to the new Terra blockchain that emerged with the hard fork following the USTC crisis in the Terra network in May 2022. It is also known as Terra 2.0.

What is the Terra (LUNA) crisis?

Terra (LUNA) is the event that caused the price of the old Luna (LUNC) to drop 99.99 percent in May 2022, when the USTC stablecoin running on the Terra blockchain lost its value. USTC, which is theoretically worth 1 USD, lost more than 98 percent of its value. This event, which occurred in May 2022, is known as the LUNA Crisis in the cryptocurrency markets.

What is the supply of LUNA coin?

There is no maximum supply of LUNA coins. The Terra blockchain was revived with 1,000,000,000 LUNA coins in May 2022.