Cryptocurrency Terra (LUNA): project overview, operating principle, characteristics, course schedule, advantages and prospects
Terra is a protocol for supporting e-commerce applications and a system of algorithmic stablecoins aiming at mass adoption of cryptocurrency. LUNA is a native token of the project, which serves to maintain stable prices. The Terra ecosystem is based on the desire to provide value to two audiences — sellers and end users.
On August 19, Terra (LUNA) cryptocurrency was added to the listing on the Binance exchange and is traded in LUNA / BTC, LUNA / BNB and LUNA / BUSD pairs.
In traditional systems, intermediaries are involved, who can take up to 5% of the transaction amount. Terra cuts transaction fees by up to 0.5%. As for end users, thanks to the mechanics of supply and demand, they will be able to receive 5-10% discounts for each transaction. Price stability in the Terra system is maintained by increasing or decreasing the money supply.
The protocol operates on the Proof of Stake (PoS) consensus mechanism, where miners need to freeze their LUNA cryptocurrency to confirm transactions on the network. The editorial staff of Btcnewsweb.com offers an overview of the platform and the Terra token, which are now very popular.
|Name||Price||Market Cap||Supply||Change % (7D)||Performance|
Terra cryptocurrency chart (CRV)
|Total emission||1 000 000 000 LUNA|
|Current issue (as of 29.08.2020)||434 716 503 LUNA|
|Course (as of 08/29/2020)||0,5 $|
|Market Capitalization (as of 08/29/2020)||229 827 955 $|
|Exchanges||Binance, BKEX, KuCoin, Bithumb|
Features of the Terra ecosystem
Terra is a price-stable cryptocurrency designed for mass adoption, and at the moment it is already a full-fledged financial infrastructure for next-generation decentralized applications. Features of the project:
✅ A protocol that ensures cryptocurrency price stability through algorithmic expansion and supply reduction. Terra is capable of supporting a global payment network by linking to major world currencies.
✅ The network is focused on creating a medium of exchange that can be freely used across a variety of e-commerce platforms. According to the developers, a currency that cannot be freely spent has no value.
✅ Seigniorage is a special scaling system. When user activity increases, the system automatically issues Terra tokens and converts them into LUNA token. Seigniorage is the value of the newly minted currency minus the cost of the issue (which in this case is zero). The system burns part of the earned LUNA, reducing production volumes.
✅ Creation of conditions for financial innovation. Terra plans to become an open platform for fundamentally new financial dApps and thereby increase the real GDP of the blockchain economy.
Terra is modernizing the traditional payment system with a single efficient blockchain. This provides the following benefits:
✅ Decrease in operating costs.
✅ Instant settlement.
✅ Regular discounts.
The Terra payment network is backed by a family of stablecoins pegged to major fiat currencies. They are based on a protocol designed to always algorithmically maintain price stability by expanding or contracting the money supply. The stablecoin network is backed by a staking-enabled LUNA token. As a reward for ensuring stability and security, LUNA stakers receive a reward – network commissions and seigniorage.
Terra payment solutions
The two main payment solutions powered by Terra are:
✅ A decentralized payment gateway where users simply link their bank accounts to pay. Seamless user interface plays a significant role in mass adoption. Today, millions of dollars pass through CHAI every day.
✅ Meme Pay. The result of a partnership with a well-known Mongolian messenger is the launch of stablecoin payments with direct banking integration. Anyone with a local bank account can instantly fund it with an MNT token pegged to the Mongolian tugrik 1: 1, and then pay for any day-to-day goods and services.
Both apps can be downloaded for iOS and Android for free.
LUNA token and its purpose
LUNA is a staking coin in the Terra ecosystem. This is not a stablecoin, its price is formed naturally in the market. The two main functions of a token are to protect the system from volatility and to reward stakeholders.
The Terra protocol runs on Proof of Stake (PoS). At the time of finding each block, the protocol chooses to whom to transfer this work, out of the total number of miners holding the LUNA on the account. The next block is created by aggregating transactions, building consensus among miners, and ensuring the correct distribution of the reward with high fault tolerance. The choice of the block producer depends on the size of the LUNA share owned by the miner.
LUNA is the most effective protection against Terra price fluctuations. The system acts as a counterparty for everyone who wants to exchange Terra for LUNA at the target exchange rate. In this case, volatility is carried over from the Terra price to LUNA.
Where to store LUNA
To store their token, the developers have created a special wallet Lunie.io, which also supports staking functionality. In it, you can create your own portfolio for staking, participating and managing. We receive instant notifications about all changes related to the account. The wallet does not store user keys and funds.
There is both a web version of the wallet and an app for mobile devices (beta versions at the moment). In both cases, open source has been closely reviewed by two world-class audit firms. No critical errors found.
An alternative option for managing funds is directly on the official website https://station.terra.money/.
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Where to buy / sell, trade LUNA cryptocurrency
The LUNA token was added to the Binance exchange on August 18, 2020. To purchase it there, you need to create an account on the binance.com exchange and, if necessary, verify it (if you are going to make a purchase for fiat money). Verification is not required to purchase with cryptocurrency.
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Having replenished the account, if it has not yet been replenished, go to the “Spot Wallet” section, find the required token and click “Trade”. Select the required trading pair. Currently available options are LUNA / BNB, LUNA / BTC, LUNA / USDT, LUNA / BUSD.
The functionality for creating orders is located at the bottom center. Create a buy order, select its type and specify the quantity (as well as the price, if the order is limit).
Advantages and disadvantages
✅ An original and innovative solution.
✅ Built to accelerate the adoption of cryptocurrencies around the world.
✅ Collaboration with renowned companies.
✅ Token listing on major exchanges.
❌ So far, it is most relevant for Asian countries.
Terra is a forward-looking project built on stability and thereby giving users confidence in digital financial transactions. The ecosystem is easily scalable and already reaches millions of users in several countries around the world. The security and stability of the network is maintained by the stakers. The protocol has been verified by audit companies and has been successfully operating since 2019.