In May of this year, Terraform Labs announced the restart of the blockchain and released a new token - Terra Luna (LUNA). At the same time, the previous token was renamed Terra Luna Classic (LUNC). The changes have caused questions and confusion among the community, so it’s worth understanding the main differences between these coins.
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Features of LUNC and LUNA coins
This is a native coin that was launched 4 years ago. With its help, participants were allowed to pay, participate in staking and manage the platform. Also, LUNC was responsible for fluctuations in the price of the algorithmic stablecoin TerraUSD (UST).
After the value of the coin collapsed by almost 100%, the team decided to restart and change the names of the tokens.
Terra Luna (LUNA) – a Terra 2.0 blockchain token that was released on May 28, 2022. New tokens went to the wallets of community members, developers and holders of LUNC and UST.
To store the digital asset, the Terra Station wallet and the Terra control panel are used. Luna owners can store money, transfer it to staking and take part in management.
Main differences
First of all, it is worth highlighting different blockchains. Luna Classic runs on the original blockchain, while Terra Classic runs on Terra 2.0.
The developers are aiming to make the LUNC token deflationary. For this, a 0.2% incineration tax is applied. It was previously noted that the rate of burning tokens in the updated protocol has been increased by 3 times.
27 октября On October 27, Terra Luna Classic (LUNC) is trading at $0.0002467 and Terra Luna (LUNA) at $2.5.
In terms of sales, LUNC is well ahead of LUNA. Analysts explain such indicators by the speculative opportunities of the asset and its sharp growth by 400%.
The future of tokens
What will happen to Luna Classic in the future is not clear. Attention to the coin increased after the team introduced a "burn tax". However, one should not hope for a restoration of investor confidence due to the past blockchain crash.
How Terra Luna behaves will depend on the desire of developers to continue their activities, which previously created applications, based on the old Terra blockchain. At the moment, large investors disagree on the need to support the Terra 2.0 system.