Terra (LUNA) Price

How the Terra Blockchain Works

Terra is a Proof of Stake (PoS) blockchain system that relies on validators to confirm transactions and secure the network. Validators verify transactions, propose blocks, and participate in the consensus mechanism.

The Terra chain employs the Tendermint consensus model by the Cosmos SDK. Validators running full nodes vote on block validity and record blocks to the blockchain. Their role is vital in maintaining the integrity and efficiency of the network.

Consensus

The Tendermint consensus process involves validators proposing blocks of transactions and voting on their acceptance. If a proposed block is rejected, a new validator is selected to propose a block, and the process restarts. If the block is accepted, it is signed and written to the chain, with transaction fees distributed as staking rewards. Validators receive additional rewards for their participation, ensuring their active involvement in the network.

Staking

Staking involves bonding Luna coins to validators in return for incentives. By staking their Luna tokens, users can earn rewards and engage in Terra protocol governance. A validator's ranking is based on their stake, leading to more frequent block proposals and greater rewards for larger stakes. Stakeholders also play a crucial role in network security and stability.

Terra Chain Delegators

Delegators are also indispensable elements of the Terra network. They stake Luna to validators and receive a portion of transaction fees as a staking reward. Delegators can earn rewards from consensus without running a full node, making staking accessible to a broader user base. By staking Luna to validators, delegators increase the validator's weight and earn a share of the rewards, promoting active participation in the network.

Phases of the Luna Coin

The Luna token operates across three distinct stages: Un-bonded, Bonded, and Un-bonding.

• During the Un-bonded phase, Luna is available for open trading.

• In the Bonded phase, Luna accrues staking rewards.

• In the Un-bonding phase, Luna is locked for a preset duration, usually around 21 days.

This multi-phase framework enhances network stability and mitigates volatility.

Bonding, Staking, and Delegating

The terms bonding, staking, and delegating are often used interchangeably in the context of Luna. They all involve adding Luna coins to a validator's stake, contributing to the security and consensus of the Terra ledger. By bonding, staking, or delegating Luna, users actively participate in the network and can earn staking rewards.

Un-bonding

Un-bonding refers to the process of removing staked Luna from a validator. However, the un-bonding process takes 21 days to complete, during which no trading or staking rewards are possible. This ensures that the network remains stable and prevents sudden changes in the Luna supply. Once the un-bonding period is over, the Luna becomes available for transactions again.

Re-delegation

The re-delegation function in Station (the official wallet of the Terra distributed ledger technology) allows users to instantly move their staked Luna coins from one validator to another. However, validators receiving re-delegations are prohibited from further r-delegating for 21 days. There are also restrictions on the number of re-delegation transactions per wallet and receiver, ensuring the process remains manageable for network participants.

Rewards

Stakers and delegators can earn rewards from staking Luna tokens in the Terra network. These rewards come from two sources: gas fees and inflation rewards.

Gas fees are added to each transaction to prevent spamming, and validators can set minimum gas prices.

Inflation rewards involve minting new Luna at a fixed rate of 7% per year, which is distributed as staking rewards to validators and delegators.

Slashing

Slashing is the penalty imposed on misbehaving validators. Slashed validators lose a portion of their stake, and their delegators' stake is also affected. Slashed validators are excluded from consensus for a specific period as an additional deterrent against misconduct. Slashing helps maintain the integrity of the network and ensures that validators adhere to the protocol rules.

Governance

The Terra protocol operates as a decentralized public blockchain technology governed by community members. Governance allows users and validators to propose, vote on, and implement changes to the Terra Luna protocol. It is a democratic process where the community actively engages in decision-making, ensuring the protocol evolves to meet the needs of its users.

Proposals

Community members can submit proposals for changes to the Terra protocol through Terra's Agora forum. Proposals require support, feedback, and an initial deposit to be considered. There are different types of proposals, such as Parameter Change Proposal, Community Pool Spend Proposal, and Text Proposal, each handling various aspects of the protocol. Proposals aim to improve the overall functionality, security, and usability of the Terra network.

Voting Process

Voting on proposals is a crucial part of the governance process. Users and validators vote with their staked Luna, with one staked Luna equaling one vote. If a user fails to specify a vote, their vote defaults to the validator they are staked to. Validators vote with their entire stake unless specified otherwise by delegators, ensuring the governance process reflects individual preferences.

Deposits

The governance process includes a proposal submission period and a one-week deposit period where Luna is deposited as collateral. A minimum threshold of 512 Luna coins must be deposited to end the deposit period and protect against spam. After the deposit period, a one-week vote period begins, where users and validators vote on the proposals. Deposits protect against unnecessary proposals and spam, ensuring the governance process remains efficient and effective.

Terra Ecosystem

The Terra ecosystem is a thriving and innovative platform that offers a wide range of projects and opportunities for users and developers alike.

With projects like Alliance, users can diversify and enhance their staking yield, while also attracting more users, developers, and liquidity.

The BIG Labs Studio provides a free dashboard for Terra developers, allowing them to test smart contracts and simulate messages with ease.

Additionally, the ecosystem offers asset management protocols like Black Panther, which helps users achieve superior returns and optimize yield through intelligent vaults and data-driven models.

Capapult brings Solid and CAPA to Terra, offering over-collateralized stablecoins and decentralized governance.

With projects like Coinhall providing real-time price charts and aggregating swaps, the Terra ecosystem is truly a hub for innovation and growth.

Founders of Terra

Terra was established in January 2018 by Daniel Shin and Do Kwon, with a vision to drive the widespread adoption of blockchain technology and cryptocurrency. Their unique approach focused on enhancing price stability and usability. Taking the role of CEO at Terraform Labs, the company behind Terra, Kwon played a key role in its development.

Prior to his involvement with Terra, Shin had notable experience in the industry. He was a co-founder and leader of Ticket Monster, renowned as TMON, a prominent e-commerce platform in South Korea. Additionally, he co-founded Fast Track Asia, a startup incubator that collaborated with entrepreneurs to create thriving businesses.

Kwon had previously founded and served as CEO of Anyfi, a startup dedicated to providing decentralized wireless mesh networking solutions. His expertise also extended to positions at reputable companies such as Microsoft and Apple, where he worked as a software engineer.

Following the decline of Terra Classic, Do Kwon devised a revival plan that ultimately resulted in the hard fork of Terra Classic into Terra. Although his proposal faced criticism from industry leaders like Changpeng Zhao, the founder of Binance, and Vitalik Buterin, as well as disgruntled UST investors, the community voted to implement Kwon's plan. Consequently, Terra Classic transformed into its new Terra blockchain on May 27, 2022.

LUNA (Terra Luna) Vs. LUNC (Terra Classic)

The existence of Terra Luna (LUNA) and Terra Luna Classic (LUNC) can be confusing for users, especially considering their similar names. However, these two tokens are associated with different versions of the Terra blockchain and have distinct characteristics.

Terra, a blockchain project, experienced a significant token crash in May 2022, which was one of the largest in crypto history. As a result, the Terra blockchain had to be halted twice, causing major losses for investors. In an effort to revive the project, the community led by Do Kwon decided to create two parallel Terra blockchains.

The original Terra blockchain was renamed "Luna Classic'' (LUNC) and continues to exist. On the other hand, a new Terra blockchain, Terra 2.0, was launched with a native token called Luna (LUNA). This separation was implemented to address the issues that led to the token collapse and to provide a fresh start for the project.

Terra Luna Classic (LUNC) was actually the first native token of the Terra blockchain, created in 2018. It served as the twin token to stabilize the Terra stablecoin, terraUSD (UST). However, during the collapse in May 2022, Terra Classic stablecoins (UST and LUNC) experienced hyperinflation, which resulted in a significant decline of their value.

In contrast, Luna (LUNA) is the new native token of the Terra 2.0 blockchain. It was launched on May 27, 2022, and has some key differences compared to Luna Classic. Most notably, Luna has a finite total supply of 1 billion coins and does not have a stablecoin pair at launch.

Both Terra Luna (LUNA) and Terra Luna Classic (LUNC) are considered highly risky investments at this point. The Terra Luna Classic price (LUNC price) is not the same as the Terra Luna price (LUNA price) – consider this fact when you want to buy or trade Terra coins.

The future of the old Terra blockchain, including LUNC and UST tokens, is uncertain, and there is little incentive to use and build projects on the old blockchain. The success and value of Luna (LUNA) heavily depend on the activity and use cases on the new Terra 2 blockchain.

Luna Crypto Price Today

Changelly offers an interactive price chart of the Terra (Luna) cryptocurrency. Our Luna USD price is updated in real time, allowing you to keep abreast of the Terra performance on the crypto market.

Along with the live Terra price, our comprehensive chart reflects the live market cap (market capitalization), recent price change, and trading volume of Terra. The Terra price history can also be accessed from our informative chart.

For those curious about how many Terra (Luna) coins there are in the cryptocurrency market, the digital asset has a max supply of 1 billion Terra tokens, with nearly 600M units constituting the current circulating supply.

The highest price paid for Luna (Terra Coin) is $19.54 (the all-time high or ATH). The lowest price paid for Luna (Terra Coin) is $0.38 (the all-time low or ATL). The average price of Luna today is hovering at the $.70 mark.

The current market cap of Terra is exceeding $550M. A high market cap of Terra implies that the asset is highly valued by the market.

To decide whether the given crypto asset is a good investment for you, read our Terra Luna price prediction for the future years to know the potential future performance of Terra Luna. Keep in mind that our Luna price forecast is not guaranteed because of the highly volatile nature of cryptocurrencies.

Do not solely rely on the Terra price prediction of our crypto exchange, but conduct thorough research and consider consulting with a financial advisor before making any investment decisions.