Crypto is a vehicle-free vehicle that can go on the road, a suitable vehicle for transportation. Tether and its currency to choose from now is USDT, although this is (and still is) dominating some, there are other options available for cryptocurrency. Blockchain project Terra is coming up with such a solution. In this way, the LUNA cryptocurrency is used as a basis.
What is LUNA Coin?
Terra (LUNA) is a happy block project for a value assessment and appraisal project that focuses on payments and contracts. Its main purpose is to refresh payment chains that include banks, payment gateways and credit card networks.
One of the general acceptance of cryptocurrencies kindergarten is the price game. In the crypto market, a coin can rise or fall by 20% or more in a single day. Terra fixes hardware issues related to currency related fixed peg issues. To free the money supply from a price taker to create your need for a stabilizer. This can result in lower fees, higher fees, and cross-border exchanges.
Terra Ecosystem
The Terra ecosystem includes stablecoins, Anchor protocol, Terra network native tokens (LUNA) and Mirror protocols.
Stable coins
Terra is stablecoins that are fixed among the world’s leading companies. can access registered US dollar-pegged TerraUSD (UST), Mongolian tugrik-pegged TerraMNT, South Korean won-pegged TerraKRW (KRT) and IMF SDR-pegged TerraSDR (SDT) stablecoins. A flexible money supply fix to fix the issue with price storage. If the currency price deviates from its fixed price, the system normalizes it by decreasing or increasing the money supply. New LUNA coins have been minted for the price of Terra stablecoins.
Anchor Protocol
Anchor is a money market and savings protocol built on the Terra blockchain. Decentralized, it combines three financial principles: payments, investment and savings. Terra allows stablecoin holders to earn a fixed 20% APY. It also provides instant deposits and withdrawals, short-term loans, and LUNA margin trading.
LUNA holders can earn stake rewards without locking the LUNA as they can stake or redeem LUNA at any time. To take advantage of the credit, customers can use staked tokens as collateral. They can also borrow half of the LUNA values in question.
Borrowers should lock in the collateral 150-200% depending on the token. In return, they get TerraUSD. Anchor’s first liquid staking variant is bLUNA, a staked version of LUNA. It allows users to earn betting rewards while giving them full control over their coins.
Mirror Protocol
Mirror via Mirrored Assets (mAssets) issued by the protocol and reflect exchange prices enables the trading of non-digital assets. To mint a mAsset, more than 150% of the real asset’s value must be locked in Terra stablecoins or mAssets as collateral.
About LUNA Coin
LUNA, the Terra network token, is the foundation of the Terra ecosystem. Its main goal is to bring blockchain technologies to the benefit-oriented masses rather than commerce. LUNA is a stablecoin that uses a self-regulating algorithm by printing or burning cryptocurrencies based on Terra’s current exchange rate.
The total LUNA supply is 1 billion tokens and the network is designed to burn tokens if their number exceeds 1 billion. The cryptocurrencies are distributed as follows: 26% given to backers through private sale, 20% kept in price stability reserves, 20% given to Terra Alliance, 20% given to employees and project contributors, 10% reserved . 4% was given for Terraform Labs and Genesis Liquidity quotes on exchanges.
LUNA serves as a betting token that secures the entire network. It can be held, traded and used as collateral. To hold LUNA, customers can use Terra’s own wallet, a hardware wallet, or a mobile wallet to store their assets on their computers. LUNA can be bought or traded on various cryptocurrency exchanges, including Bitfinex, Binance, OKEx, and Upbit.
LUNA Functions
The LUNA coin is used for a variety of purposes, some of which are listed below.
- Betting: The primary LUNA function is to protect the network by locking value through a sharding mechanism.
- Award . Users who confirm transactions and add blocks to the blockchain receive rewards in LUNA.
- Administration : Terra is a community managed protocol. Luna stakeholders have the right to vote on software upgrades, technical changes, changes to the fee structure, and monetary policy.
- Collateralization: LUNA token holders can stake their coins as collateral to confirm transactions and receive rewards based on the amount of LUNA staked.
How Does LUNA Work?
Terra network stablecoins are not insured on their own. LUNA is used as collateral to support price stability. To mint stablecoins, miners must burn an equivalent dollar amount of LUNA. For example, when LUNA is replaced with UST, a certain percentage of LUNA is burned and the rest accumulates in Terra’s Community treasury. At the same time, a new UST is printed.
Community pool accumulates reinvested funds to build more apps using UST. If UST demand is low, Terra’s algorithm increases the fees. This way, validators are always rewarded with a steady UST cash flow.
To become validators and issue transaction blocks, users must stake their LUNA and be among the first 100 LUNA holders. The unqualified can transfer their staked coins to the validators, who can then validate the transactions on their behalf and earn passive income. Users who bet on LUNA receive betting rewards based on their bet size. These rewards come from three sources:
Gas: Terra uses gas to prevent spam when executing smart contracts. Validators define the minimum gas price and reject transactions with higher prices.
Fees: Users are charged fees ranging from 0.1% to 1%, capped at 1 TerraSDR and payable in any Terra currency.
Signorage rewards: Signorage pool rewards are available to validators when they vote to exchange LUNA for Terra stablecoins.
History of LUNA
Terra, a Korean blockchain company Terraform, one of 15 e-commerce companies in Terra Alliance, a holding in Korea and Southeast Asia Created by Labs. The co-founders – Daniel Shin and Do Kwon, who is also the CEO of the company – aimed to create a new kind of cryptocurrency that could reflect the resilient nature of the digital economy.
Terraform Labs was founded in January 2018 and the history of the Terra protocol began.
LUNA Coin Review and What Is Its Future?
Considering the current trend towards digital currency adoption, Terra’s recent bull run, becoming one of the largest stablecoins by market cap, and its popularity among traders, our analysis suggests that Luna is a pretty good prospect. towards. Its value will increase in the coming years.
There are some factors that can affect the LUNA price. One of them is the growing team of fans. Terra is gaining in popularity with over 1,800 new accounts created daily, according to Terra Community Console, an on-chain data platform. This means more crypto enthusiasts are holding and using LUNA, creating transactions and getting more rewards, all of which increase token market capitalization.
Another factor is the LUNA cryptocurrency supply, which prevents inflation – cryptocurrencies are getting bigger every day. The increasing use and use of Terra stablecoins through payment applications and staging protocols is also increasing the value of the LUNA token. In addition, Terras consisting of texts are located in places consisting of all blocks.
LUNA is suitable for piecemeal retailers. A LUNA per fixed free is also required to maintain the overall overall. The industrial within the scope of the project welcomes the popularity of the prices on sale.
