Terra is a decentralized, open-source, and public blockchain protocol that harnesses a Proof-of-Stake consensus mechanism to empower decentralized applications (dApps), particularly within the realm of decentralized finance (DeFi). LUNA stands as the native digital asset of the Terra blockchain, functioning as both the governance token and utility token within the ecosystem.
The original Terra 1.0 ecosystem experienced a tumultuous event when it was subjected to an attack that resulted in the de-pegging of the TerraUSD (UST) stablecoin, leading to a severe crash in the price of the original Terra (LUNA) token. This unfortunate development caused losses exceeding $40 billion in the cryptocurrency market, prompting co-founder Do Kwon to formulate a revival plan.
LUNA 2.0 was introduced following the approval of governance proposal 1623 by the Terra community. This marked the genesis of a brand-new blockchain, distinct from Terra 1.0, now called Terra Classic (LUNC).
Terra 2.0, with LUNA (or LUNA 2.0) as its native token, officially commenced its operations on May 27, 2022. The mainnet launch took place on May 28, 2022, with the creation of the first block, Phoenix-1, occurring at approximately 06:00 UTC.
Terra 2.0 is not a hard fork of the original Terra blockchain but rather a novel blockchain protocol. It deviates from Terra 1.0 by discontinuing support for stablecoins, a feature prominent in its predecessor. The Terra Ecosystem Revival Plan, spearheaded by Do Kwon, outlines Terra's future role in supporting leading dApp projects from the original blockchain while eventually replacing the Terra 1.0 network.
Projects and assets operating on the original Terra blockchain will not transition automatically to the new blockchain. Instead, they are required to initiate their migration. Several leading dApps, such as Astroport, Prism, RandomEarth, OnePlanet, and Stader, have expressed their commitment to migrating to Terra 2.0.
The LUNA cryptocurrency plays several crucial roles within the Terra ecosystem:
You can stake LUNA to become Terra validators. Validators are responsible for verifying and recording transactions on the Terra blockchain. In return for their efforts, they earn rewards through LUNA tokens. This process helps secure the network and maintain its integrity.
LUNA is the currency used to pay transaction fees when users send payments on the Terra blockchain. A portion of these fees is allocated as rewards to validator nodes, incentivizing them to continue validating transactions and adding them to new blocks.
LUNA holders possess the right to participate in the governance of the Terra network. They can vote on proposals for upgrading the ecosystem and democratizing its future development. This empowers the community to shape the evolution of the Terra blockchain.
Terra (LUNA) is an appealing digital asset for investment and trading. You can buy LUNA 2.0 on the KuCoin Spot Market, trade it against other cryptocurrencies and stablecoins, or hold it as a long-term investment if you believe in its potential. Always stay updated on the latest Terra (LUNA) price, market capitalization, 24-hour trading volume, and Terra-related news to make informed trading decisions.
Following the mainnet launch of Terra 2.0, significant changes have occurred in the original Terra blockchain and its native token, LUNA:
The original Terra blockchain, which Terra 2.0 forked from, has been rebranded as Terra Classic. This rebranding distinguishes it from the newer Terra network.
The native token of the original Terra, LUNA, has undergone a name change and is now known as Terra LUNA Classic (LUNC).
Terra Classic continues to operate alongside the new Terra network. It retains market swap features, allowing users to mint and burn LUNC tokens as needed.
While Terra Classic maintains its functionality, the stablecoins previously associated with the blockchain, such as UST, KRT, and EUT, have been rebranded as Terra Classic stablecoins. These include TerraClassicUSD (USTC), TerraClassicKRW (KRTC), and TerraClassicEUR (EUTC), among others.
Terra LUNA Classic's native token, LUNC, is now available for trading as a separate digital asset on various leading cryptocurrency exchanges worldwide. KuCoin is one such platform that facilitates trading for both Terra (LUNA) and Terra LUNA Classic (LUNC).
Terra 2.0 represents a significant shift from its predecessor, Terra Classic (formerly Terra 1.0). Here's a breakdown of the key differences:
Unlike Terra Classic, Terra 2.0 has discontinued support for stablecoins. Instead, it focuses exclusively on LUNA as the primary digital asset used for staking within its ecosystem.
Terra 2.0 operates on a proof-of-stake blockchain network incorporating innovative technologies like Mantlemint and Terra Station. These advancements result in a faster, cost-effective, and more secure network catering to the evolving demands of the crypto space.
Terra 2.0 is designed to spearhead the adoption of decentralized finance (DeFi). It also serves as a fertile ground for developing Web 3.0 and NFT-based applications, making it an attractive hub for developers and enthusiasts.
Terra 2.0 marks a distinct evolution from Terraform Labs' previous offerings. It is a robust platform for decentralized applications (dApps) and their creators, emphasizing versatility and utility.
Terra Classic (Terra 1.0) maintains its commitment to stablecoins. This ensures the continued use of cryptocurrency and blockchain technology in global payments.
The adoption of Terra's ecosystem by decentralized applications (dApps) and users can influence the Terra LUNA price and overall market capitalization. As the crypto landscape evolves, Terra 2.0 is a testament to the adaptability and innovation within the blockchain industry.
Here are some reasons why you could consider adding LUNA 2.0 coin to your crypto portfolio:
Terra operates on a proof-of-stake blockchain, allowing LUNA holders to stake their tokens and earn rewards. This can provide a passive income stream, making it appealing to long-term investors.
Terra's ecosystem has steadily expanded, focusing on DeFi and web3 dApps. As more projects and users join the Terra network, it can drive demand for LUNA, supporting the LUNA/USDT price.
Terra leverages innovative technologies like Mantlemint and Terra Station, enhancing network speed, security, and cost-effectiveness. These technical advancements can boost confidence in the project and increase the value of Terra (LUNA) coin.
Terra's focus on creating a robust ecosystem for dApps and NFT-based applications sets it apart. This diversity can attract developers and users, driving LUNA's utility and supporting the price of Terra crypto.
While we cannot offer an accurate Terra (LUNA) price prediction over any timeframe, you could monitor the following factors to gain a better understanding of the price trends in the Terra 2.0 cryptocurrency:
Increased transactions and activity on the Terra blockchain can indicate growing interest and utility, potentially boosting the LUNA coin price.
Updates, improvements, and partnerships within the Terra ecosystem can positively impact the price of LUNA coin by increasing confidence in the project.
Here’s how you can stake LUNA tokens on the Terra blockchain to participate in the blockchain’s PoS consensus mechanism:
1. Buy LUNA on KuCoin or other supported platforms and transfer your tokens to your Terra wallet, e.g., Terra Station.
2. Log in to your Terra Station wallet.
3. Find the “Stake” option in your wallet.
4. Click the Stake option and delegate your LUNA tokens for staking. You can choose a validator to delegate your tokens to based on their reputation and commission fees.
5. Confirm the delegation transaction to stake your LUNA tokens.