Today we will talk about: Terra (LUNA)!
OVERVIEW
In the last token review, I talked about Curve DAO Token. If you missed my last crypto analysis, you can recover it below.
What is Terra?
Terra (LUNA) is a blockchain protocol that uses smart contracts, oracle systems and stablecoins to promote many blockchain-based applications. Terra's decentralized infrastructure brings different theories and concepts to DeFi and the cryptocurrency ecosystem. The protocol provides users with many stablecoins options by using a unique price stabilization algorithm. The algorithm preserves the value of assets on the blockchain by changing the money supply to ensure that users pay lower transaction fees. In addition, the price stabilization algorithm ensures more seamless and stable cross-border transactions.
Terra was founded in January 2018 by Daniel Shin and Do Kwon. The two see the project as a way to promote the rapid adoption of blockchain technology and cryptocurrency by focusing on price stability and availability. Kwon serves as the CEO of Terraform Labs, the company behind Terra. Before developing Terra, Shin co-founded and led Ticket Monster, also known as TMON, Korea's main e-commerce platform. Later, he co-founded Fast Track Asia, a startup incubator that works with entrepreneurs to build fully functional companies. Kwon previously founded and served as the CEO of Anyfi, a startup company that provides decentralized wireless mesh network solutions. He has also worked as a software engineer at Microsoft and Apple.
LUNA Token
Terra's native token is LUNA, which is used to stabilize the protocol's stablecoin prices. LUNA holders can also participate and vote on governance proposals in the network.
Terra has a supply of 1 billion tokens. If this number is exceeded, LUNA will be burned until it returns to a balanced supply level. New LUNA tokens are minted through the algorithm of the protocol as needed to maintain the price of Terra stablecoin. LUNA was initially offered as a private token sale for initial investors, including the investment departments of major exchanges such as Binance and Huobi. The sale ended in August 2018, so Terra raised $32 million. Of the 385,245,974 LUNAs cast for sale, 10% is reserved for Terraform Labs, 20% is reserved for employees and project contributors, 20% is reserved for Terra Alliance, 20% is reserved for price stability, and 26% is reserved for project supporters, 4% is reserved for creation liquidity.
As already suggested for other coins, The best place to store or hold Terra is a hardware wallet. If you want to keep the coins for years to wait for the price to increase, please use a hardware wallet or cold storage. This is a way to store cryptocurrency offline. The advantage of cold storage is that it can protect your investment from cybercriminals. Although hackers can destroy other forms of encrypted storage, they cannot access your offline wallet.
There are many types of hardware wallets to consider, such as** Ledger Nano S, Ledger Nano X and Trezor Model T**. Any of these wallets can protect your LUNA coins from hackers and cybercriminals.
DEEPENING
In the OVERVIEW section I introduced you Terra (LUNA) and I said that is a blockchain protocol that uses smart contracts, oracle systems and stablecoins to promote many blockchain-based applications. Terra's decentralized infrastructure brings different theories and concepts to DeFi and the cryptocurrency ecosystem. The protocol provides users with many stablecoins options by using a unique price stabilization algorithm.
Now let’s see some features of Terra.
Terra (LUNA) has brought many benefits to the market. Its decentralized and permissionless nature makes it an ideal choice for the digital economy. The network provides competitive programmable payments, logistics, and infrastructure designed to simplify the development of Dapps and stablecoins. Terra is about interoperability. The network is designed to run on multiple chains connected by Cosmos IBC. Currently, Terra runs on Ethereum and Solana. The developers have announced plans to expand their protocol soon to include other best performing blockchains.
Now let’s check something about Terra Proof of Stake and Staking!
Terra operates on the Delegated Proof-of-Stake concept. This concept is a technology-based democracy using a consensus algorithm for the voting & election process. The aim of using DPoS is to secure a blockchain against malicious or centralized usage. Terra uses DPoS to facilitate the approval of the transaction and the addition of blocks to its ecosystem by Validators. For any user to become a validator, he/she must hold a huge amount of LUNA. But if they can’t, users can still engage in staking for passive rewards.
If you've been following me for a long time, you'll already know that I'm a lover of staking. I have already done several articles about it that you can find in my profile. If instead you like more the video format, I leave you some links to some of my videos on YouTube where I talk about staking.
TRX Staking:
Algo Staking:
Unfortunately, recent events that have happened to this protocol have probably decreed its demise, but I will discuss this in a future article.
Next week I’ll introduce you a new cryptocurrency!
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