Terra (LUNA) overview

Founded: 2018

Key persons: Evan Kereiakes, Do Kwon, Marco Di Maggio, Nicholas Platia

Capitalization: $14,977,084,963

Trading volume (24h): $1,097,334,900

CoinMarketCap rank: 12

Terra (LUNA) general project description

Terra (LUNA) is a decentralized, open-source protocol designed to maximize the utility of algorithmic stablecoins. Algorithmic stablecoins are tokens, often pegged to fiat equivalents (“pegged coins”). Their issuance is realised with a specific algorithm balancing the number of tokens based on the demand or usage activity.

In terms of technical implementation, Terra (LUNA) uses a proof-of-stake algorithm in the Cosmos ecosystem (ATOM), which allows users to block their Luna tokens for guaranteed and correct transfer validation.

Current state (ecosystem and partners)

LUNA token is mandatory for the protocol operation. Its main purpose is to stabilize Terra’s stablecoin value storage system. The LUNA token can be in three states:

• Bonded (time when the token is staked and used to validate transactions and therefore generate rewards for validators),
• Unbonding (process of unstaking the token, after which it becomes freely moveable),
• Unbonded (transfer and trading functions are available without restriction).

Another important feature of blockchain is the ability to issue an additional amount of TerraSDR to stabilize the price. An SDR is a special drawing right that uses fiat currency as collateral at any time in relation to the base amount of SDRs (or fiat money in collateral), and thus adjusts the current TerraSDR rate.

Future plans and development (roadmap)

A major factor in the development of Terra blockchain is the partnerships with major fiat money exchange operators — CHAI and MEMPAY. This cooperation creates a decent platform payload, creating a natural way to fund validators and developers. In addition to advancing the general infrastructure, the Luna token will be used in various applications. One example is the Wormhole project, that bridges the gap between the most popular blockchains — Ethereum, BSC, Solana and Terra helping users transfer liquidity from one ecosystem to the other, leveraging the technological strengths of each. Furthermore, a special fund - Terraform Capital has been launched to provide funding for developers and projects focused on the Terra ecosystem and LUNA token mass adoption.