Terra is a public blockchain protocol developed by Terraform Labs. It deploys a suite of algorithmic decentralized stablecoins which underpin a thriving ecosystem that brings DeFi to the masses. The Terra Protocol is an open-source stablecoin network controlled by its stakeholders, who are able to submit and vote on governance proposals, giving it the functionality of a governance token.
Regarding Terra’s native token, LUNA, its whitepaper states: “We propose a cryptocurrency, Terra, which is both price-stable and growth-driven. It achieves price-stability via an elastic money supply, enabled by stable mining incentives. It also uses seigniorage created by its minting operations as transaction stimulus, thereby facilitating adoption.” And it goes on, “There is demand for a decentralized, price-stable money protocol in both fiat and blockchain economies. If such a protocol succeeds, then it will have a significant impact as the best use case for cryptocurrencies.”
LUNA is used to stabilize the price of the protocol’s stablecoins. But, how does it work? The Terra U.S. Dollar, or UST, is pegged to the U.S. dollar through an algorithm. To mint new UST tokens, a percentage of another digital token and reserve asset, LUNA, is burned. So, if the demand for UST rises with more people using the currency, more LUNA will be automatically burned and diverted to a community pool. That is supposed to help stabilize the price.
According to CoinMarketCap, at the moment of writing this article the price of Terra is US$86,79 with a 24-hour trading volume of US$1.604.463.325. It is currently ranked number 9 in CoinMarketCap’s ranking, with a live market cap of US$31.157.431.212. It has a circulating supply of 358.982.930 LUNA coins and the maximum supply is not available.The top cryptocurrency exchanges for trading in Terra stock are currently Binance, OKEx, Mandala Exchange, Huobi Globa, and Bybit.
