Terra - a blockchain protocol that uses fiat stablecoins to power price-stable global payment systems. According to the White paper, Terra combines price stability and the widespread adoption of fiat currencies with the resistance of Bitcoin (BTC) and offers fast and affordable settlements.
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Description of Terra
The development of the project began in January 2018, and its main network officially launched in April 2019. As of September 2021, the project offers stablecoins, pegged to the US dollar and the International Monetary Fund's basket of currencies under special drawing rights - and intends to roll out additional options. The native LUNA token helps to stabilize the price of the protocol's stablecoins. LUNA holders can also submit and vote on governance proposals, giving them the functionality of a governance token.
Terra benefits
Terra was founded in January 2018 by Daniel Shin and Do Kwon. The project has appeared as a way to stimulate the rapid adoption of blockchain technology and cryptocurrencies with a focus on price stability and usability.
What does make Terra unique:
| Fiat | Terra aims to stand out through its use of fiat stablecoins, stating that it combines the limitless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. |
| Partnership | In July 2019, Terra announced a partnership with Chai, a South Korean mobile payment app, where purchases, made with the app on e-commerce platforms, are processed through the Terra blockchain network. |
Terra has a supply of 1 billion tokens. If this number is exceeded, LUNA is incinerated until it returns to its initial supply level. New LUNA tokens appear, according to the algorithm of the protocol, as needed, in order to keep the price of Terra stablecoins.
Project economics
At the beginning, LUNA was available for purchase as part of a private token sale for initial investors, including the investment arm of major exchanges such as Binance, OKEx and Huobi. The native token is available on several cryptocurrency exchanges, including:
- Huobi;
- Bitfinex;
- Upbit.
Here, it is available for trading fiat currencies, stablecoins and other cryptocurrencies. Popular LUNA price pairs are LUNA/USD, LUNA/GBP, LUNA/AUD and LUNA/JPY.