Terra Classic (LUNC) Wallet

Terra is a stablecoin platform, which is better to call a fully digital DeFi Institution, like a central bank. It was launched in 2018 by a South Korean company called Terraform Labs. Daniel Shin and Do Kwon created the Terra project to revolutionize the payments system. And to maintain the new network’s work in 2019, they’ve created a LUNA – Terra’s native token.

Generally speaking, Terra is a fully digital, decentralized financial institution. Terra’s currencies are so-called algorithmic stablecoins, which are backed by the LUNA token. A special algorithm uses LUNA to regulate the price of Terra’s stablecoins: if the UST price goes up higher than $1, LUNA tokens will be used to issue more UST and reduce the cost. And vice versa. If the UST price drops down – excessive UST will be switched to LUNA to raise it again.

LUNA is a Proof of Stake-based currency, meaning that token holders can stake their assets and receive rewards. The amount of reward depends on the amount of staked LUNA tokens. Reward tokens are first distributed to validators; then, delegators receive their coins respectively to their share.

On September 30, 2021, LUNA underwent an upgrade called Columbus-5. This update will allow creating more applications on the Terra network and will add more incentives for stakers.