Terra is an open-source blockchain payment platform. The Terra blockchain allows users to spend, store, and transfer their assets. Terra is a stable digital currency platform. The Terra protocol presents its native token as Luna.
The world is becoming more decentralized, so we predict that Terra, which is growth-driven, will be used as a dApp platform. It wishes to build price-stable tokens on its platform. Terra will probably become the first usable currency and stable platform on the blockchain. Terra’s objective is to fund the establishments and proposals that result in the highest net effect on the economy.
Daniel Shin and Do Kwon founded Terra in January 2018. Daniel Shin is the co-founder and CEO of Chai company. Terra has made many partnerships with payment platforms, especially in Asia.
Terra announced a partnership with Chai in July 2019. Chai is a south Korean cellphone payment application. One can make their purchases on this application by e-commerce platform via the Terra network.
He is also the co-founder of TMON, one of Korea’s leading e-commerce platforms. In 2017, he transitioned from CEO of TMON to Chairman. While working, Shin was always wondering about the amount of fee he had to pay for business transactions. Then when he met Do Kwon, he started learning about the potentials of blockchain and crypto.
Do Kwon co-founded Terra because he wanted to develop a more efficient platform for blockchain-based payments. Do Kwon used to be a software engineer at Microsoft and Apple; furthermore, he has a degree in Computer Science at Stanford.
Terra underpins algorithmic stable-coins. Terra is also one of the two native tokens under the Terra protocol, an open-source blockchain protocol. The other main one is Luna. They have different objectives, however.
Terra coin price follows the U.S. dollar and euro. How does Terra protocol work? How can it keep the prices stable? It makes sure that the supply and demand for Terra stable-coin are in balance. It makes it happen by using Luna as a counterbalance measure to the Terra stable-coin.
So remember, besides being a protocol, Terra is a stable_coin (a cryptocurrency made in the Terra protocol).
What Makes Terra Distinctive?
Terra uses fiat-pegged stable coins. In this way, it’s using the privilege of cryptocurrencies and the benefit of stability in the price of fiat currencies. Imagine that! This is why Terra is unique.
It interests Luna holders to swap luna and stable coins. Users will earn profit as well as make the supply match the demand. So, this protocol keeps its one-to-one peg.
Why Terra? Because there is a need for a decentralized, price-stable money protocol in both fiat and blockchain currencies. This protocol can substantially influence the best use case for cryptocurrencies.
Luna is Terra’s native token. Terra has about 1 billion tokens, and in case of this number is exceeded, they’ll keep burning Luna until it goes back to the same level as the supply. Luna tokens are minted in the network to keep the price of the Terra stable. Users use Luna for governance and mining.
Luna was originally minted to serve the needs of initial investors to buy in a private token sale. This sale was finished in 2018, which resulted in the company raising about 32 million dollars.
Luna is used for keeping the price of stable coins in balance. Luna holders also can submit and vote on governance proposals, giving it the functionality of a governance token.
Luna is Terra network’s staking token. It means that users stake Luna to Terra miners, also known as validators, who document and confirm transactions on the protocol and earn fees as their reward. Luna is used for governance and mining. Luna’s value grows according to the Terra.