Introduction to the Terra project (LUNA)
Amid the explosion of Blockchain and DeFi projects, people are starting to realize the importance of stablecoins to Blockchain. If you pay attention you can see that most of the DeFi projects use stablecoins like USDT, USDC, BUSD… The reason is due to the notorious price changes of common cryptocurrencies that make them impossible to apply in the ecosystem. or build economies because most tokens are speculative, causing prices to fluctuate wildly. That's why over the years there have been many Blockchain projects, but none of them can really be put into operation or any digital currency that can pay in life. In that situation, the Terra project is built to create stablecoins that can be traded in commerce in order to build useful ecosystems.
What is the highlight of Terra?
Available ecosystem
When it comes to the advantages of a Blockchain, people often think of disruptive technology or bold ideas. But in fact, a strong ecosystem determines the value of a coin because the ecosystem is where the liquidity is guaranteed, as well as creating the actual use value of the cryptocurrency.
The company behind Terra, TMON (Ticket Monster) is one of the 10 largest e-commerce companies in Korea, with a company value of up to $3.5 billion. At the head of an e-commerce alliance with over 40 million users, TMON can guarantee a solid ecosystem once Terra is up and running.
In fact, the TERRA coin has not only 1 Stablecoin but a TERRA “society”.
These TERRA stablecoins will correspond to popular currencies such as USD, EUR, CNY, JPY, KRW, GBP, .. and the common currency of the IMF is SDR.
Or to put it simply, we have the corresponding Stablecoins pegged to the above currency units: TerraUSD, TerraEUR, TerraJPY, TerraCNY, TerraGBP, TerraKRW, TerraSDR.
The stability
Terra stabilizes the price by changing the currency supply, when necessary, can use the LUNA token to sign contracts to ensure the value of Terra. In addition, Terra operates under decentralized solvency protection to eliminate the risks of errors and price attacks.
Do not liquidate assets
In the Marker Dao model, your assets can be completely confiscated and liquidated to ensure value for stablecoins. Terra takes a different approach by letting asset holders put their tokens in a stable reserve basket and earn transaction fees from Terra.
Low cost
For the purpose of making a currency for payment, stable coins should have extremely low transaction costs, but due to the limitation of Blockchain, many stablecoins such as USDC,USDT have very large transaction fees, many times even higher than 10 USD, which makes them unavailable in retail trading. With almost zero transaction costs, Terra has the upper hand over most other stablecoins.
Decentralized
In essence, most stablecoins are centralized coins because they are backed by real-life companies, which makes them useless if the companies owning go bankrupt or become insolvent. Terra is a decentralized coin, so they can all operate independently without any company owning them.
How does Blockchain Terra work?
The Terra blockchain works by using a Proof of Stake consensus algorithm based on Tendermint, where LUNA token holders stake their tokens as collateral to validate transactions, receiving rewards in proportion to the amount of LUNA place a bet. Token holders can also authorize others to authenticate transactions on their behalf, sharing any revenue generated. The LUNA token will act as the price stabilization fund of the Terra stablecoin of equivalent value. Terra can create multiple stablecoins that form an international payment network.
Stablecoin Terra and LUNA token
What is Terra stablecoin ?
Terra Stablecoins are a collection of stablecoins pegged to a national currency for e-commerce payments in the Terra Blockchain. For example: TerraUSD, TerraEUR, TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraSDR... These stablecoins are used for payment in the network of e-commerce platforms that accept these stablecoins. Terra's total supply is infinite, as long as there is enough collateral to mint.
What is LUNA token?
LUNA is the native token of Blockchain Terra, which acts as collateral for stablecoins issued on the protocol. LUNA tokens are burned and issued using the stablecoin on-demand algorithm. This mechanism pressures stablecoins to maintain their stable value. There are also fees associated with the issuance and burning of stablecoins (known as seigniorage). A portion of these fees will be distributed to LUNA holders.
Some basic information about Terra token (LUNA)
- Name: Terra
- Symbol: LUNA
- Blockchain: Terra
- Token Standard: Updading
- Token type: Utility and stake token
- Total Supply: 994,337,468 LUNA
- Current supply: 484.811,261 LUNA Note: In the Terra Blockchain, there is only one token, LUNA
Allocate LUNA tokens
Of the 385,245,974 LUNA tokens (more than 1/3 of the supply) minted for sale, 10% goes to Terraform Labs, 20% to staff and project contributors, 20% to Terra Alliance, 20% to stockpile of price stability, 26% for project backers and 4% for liquidity. The remaining tokens (614,754,026) will be generated according to Terra's protocol. This offering brings Terra $ 32 million.
Investors
With a strong foundation and wide relationship, Terra attracts investment from Kakao Ventures, Kakao Investment, Dunamu & Partners, Hashed,... of the TMON e-commerce platform. But not only Korea, Terra also received investment from a series of other large investment funds such as 1kx, Kenetic, GBIC, Monex Group, Translink Capital,… Or especially Polychain Capital, one of the Crypto investment funds. The first is backed by Sequoia Capital, the leading prestigious venture capital fund in the US with successful deals such as Apple, Google, Oracle, PayPal , Stripe, YouTube, Instagram, Yahoo! and WhatsApp… Terra is the first and only project in Korea that has been invested by Polychain Capital.
Team
From mathematicians to scientists and financiers, with backgrounds as diverse as Apple, Microsoft, and the Federal Reserve Bank of New York, this team brings together the wide range of skills that make up the protocol. Terra.
Daniel Shin is one of the co-founders. He is also the founder and CEO of TicketMonster, Korea's leading e-commerce platform. He is also the co-founder and board member of Fast Track Asia, a company that has founded and sold many other businesses such as Fast Five and FoodFly. Daniel is known for his expertise and deep network in e-commerce. He holds a BA in Economics from the Wharton Undergrad School.
Do Kwon is another co-founder of Terra. He also founded and is the CEO of Anyfi. During his time at Anyfi, Do Kwon co-invented and holds a number of key company patents on decentralized networking and routing systems. He was also a software engineer at Microsoft and Apple, and graduated in Computer Science from Stanford University.
Nicholas Platias is Head of Research. Having previously founded Guru Labs, he also develops algorithms and distributed systems at Nest and RelatelQ. Nicholas studied Math and Computer Science at Stanford and has won many medals at the International Math Olympiads.
Evan Kereiakes is a financial researcher. He worked at the Federal Reserve Bank of New York for more than 7 years. He is the Japan Portfolio Manager for the foreign exchange reserve portfolio. Prior to that, he was an economic analyst at the US Treasury, having also worked with the White House Economic Council. Evan studied engineering at Duke and the University of Illinois, and also holds an MBA from the University of Chicago.
Don Kim is the Sales Manager. Don is the Business Development Manager at South Korean crypto exchange GOPAX. Prior to that, he was a military diplomat for the Republic of Korea Air Force and studied Government at Harvard.
Wayne Shu is the head of strategy. After leaving Stanford to work on many projects, Wayne sees the potential in cryptocurrencies to change the way modern finance works.
KJ Lee is the head of product. He brings to the table eighteen years of experience in project management and development. KJ also served as Head of Development at Mesh Korea, also adopted TicketMonster as Product Owner. He is an expert in logistics, supply chain and payment processes.
CJ Han is the Chief Financial Officer. With eight years of experience in portfolio management as well as in fixed income, currency and commodity trading, he also holds a BA in Economics from the University of Pennsylvania.
Gigi Kwon is the Head of Communications Department. She is the Chief Marketing Officer at Uber, is the Regional Manager of the company's marketing and Eats Uber's CRM and paid online campaigns. Gigi is also a former associate at a New York-based PR agency, holding the title of Communications from the University of Pennsylvania.
Terra's Roadmap in 2020
Public Tequila-4 Terra Testnet.
The event went live on Thursday, September 3, 2020 (01:00 PST, 04:00 EST) with rc-0.4.3. Testnet has recommended feature upgrades including smart contract integration.
+ Contest for developers.
Public Mainnet Upgrade (Columbus-4).
Taking place on October 3, 2020
+ Contingency when successfully evaluating and approving the governance proposal
Houston
+ Development framework for CosmWasm smart contracts.
StationCX browser extension.
Browser extension to interact with Blockchain Terra.
Launch of mobile wallet for Blockchain Terra mid-October.
Engineering Bay.
This is a knowledge base of Terra smart contract standards, tools, and resources.
How to earn and own LUNA Token
The LUNA token is generated by trading stablecoins in the Terra Blockchain, which you can also purchase on some of the exchanges listed below.
Exchange LUNA token
Exchanges that can buy LUNA tokens include: Binance, BKEX, Huobi Global, KuCoin.
LUNA token storage wallet
Terra owns its own wallet, MicroWallet.
Should I invest in LUNA?
Here are some points worth noting if you intend to invest in LUNA:
- LUNA is used for staking.
- LUNA has a total supply of 1 billion tokens and the price of LUNA increases as more and more transactions occur.
- Terra is one of the projects invested by Binance Labs and a number of other large funds.
summary
In terms of revenue and ecosystem size, Terra is certainly one of the leading projects in the electronic world, moreover Terra has a strong ecosystem, quality team and a long list of projects. Famous partners. Therefore, Terra is a good project for those who want to invest long-term and with little risk. All information in the article What is Terra? of Coin68 is aggregated and researched information and should not be considered investment advice. Good luck with your investment!
