- Terra Classic does so by incentivizing the LUNA holders to swap LUNA and stablecoin
- Terra has a group of businesses and platforms that promotes Terra for its adaptation, known as Terra Alliance.
Luna Classic (LUNC) is the first native token of the Terra classic blockchain launched in August 2018. LUNC existed before the new blockchain, now known as Terra(LUNA), and works in the Terra ecosystem with the original code.
The main function that the native token performs was to absorb the deviation of the stablecoin (UST). UST was pegged to the US dollar by minting and burning UST tokens to maintain the balance of supply and demand of the coin. In May 2022 it lost the US peg and collapsed.
Founders
Terra was founded in January 2018 by Do Kwon and Daniel Shin. They created Terra Classic to widely adopt blockchain technology and cryptocurrency by making its price stable and usable. Kwon became the CEO of terraforming labs, which created Terra. Before starting Terra, Daniel Shin was head of the ticket monster which was popularly known as TMON, TMON is a central e-commerce platform in South Korea. Later he Co-founded fast Track Asia which was an incubator working with the entrepreneur to set up a fully functional business.
Do Kwon previously worked as an engineer at Apple and Microsoft, then he co-founded and served as CEO of Anyfi, its start-up providing decentralized wireless mesh networking solutions.
Unique in Terra Classic
The thing that makes Terra unique is that it is fiat-pegged, it combines the borderless advantage of the cryptocurrency with the day-to-day stability of the fiat currencies. It keeps a one-to-one peg to the fiat currency through an algorithm that automatically adjusts the demand and supply of stablecoin. Terra Classic does so by incentivizing the LUNA holders to swap LUNA and stablecoin at a profitable rate, as required, to either increase or decrease the supply of the stablecoin to match its demand.
Terra Classic has collaborated with many businesses, especially in the Asia-Pacific region. In July 2019 it partnered with Chai, which is a mobile-based payment application, in which payment would be made using terra blockchain technology on an e-commerce platform, and in this 2-3% will be charged to the merchant.
Other than this, Terra Classic has a group of businesses and platforms that promotes Terra for its adaptation, known as Terra Alliance. In February 2019, the company announced 10 different countries’ e-commerce platforms, having more than 45 million customer base and gross merchandising of $ 25 billion, which were part of the Alliance.
Coins in circulation
The total supply of terra coin is 6.9T and currently, terra classic circulating in the market is 6.5T.
Terra Classic uses a proof-of-stake consensus mechanism, in which LUNA token holders can stake their tokens to validate the transaction and earn rewards in proportion to LUNA tokens staked by the holders