The new blockchain called Terra 2.0 will focus on providing a scalable and efficient ecosystem for the development of Web3 dApps, especially in the DeFi space. Also called LUNA 2.0 among crypto enthusiasts, Terra (LUNA) is a brand new cryptocurrency that will serve as the native token of the new Terra network. On the other hand, the Terra 2.0 ecosystem will now be called Terra and use LUNA as its native token. Its most popular stablecoin, which was formerly known as TerraUSD (UST), will now be known as TerraClassicUSD (USTC). Terra 1.0 or Terra Classic will continue along the way of the old Terra's mainnet, supporting stablecoins and using the Terra LUNA Classic (LUNC) token to maintain these assets' price stability. This network was previously called the Terra blockchain but was rebranded as part of co-founder Do Kwon’s revival plan to create a brand new Terra 2.0 network. LUNA Classic (LUNC) is the native digital asset of the Terra Classic or Terra 1.0 blockchain. This, in turn, causes the LUNA Classic price to slide lower. When the demand for USTC declines, LUNC’s circulating supply increases. In such an event, the Terra Classic ecosystem burns more stablecoins and mints more LUNC. On the other hand, if the USTC stablecoin demand falls, its price can weaken from the fiat peg. Increased demand for Terra Classic’s stablecoins makes LUNC more valuable as an investment. In this case, the ecosystem burns more LUNC coins from their total supply to mint the stablecoins to match the demand and bring the price back down to maintain the peg - in the case of TerraClassicUSD (USTC) equals that of the US dollar.Īs the burn rate picks up, LUNC’s circulating supply reduces, and the Terra Classic price climbs higher. When the demand for Terra Classic’s stablecoin increases, there is a worry about its value rising above the fiat peg. In exchange for their efforts, validators receive a percentage of transaction fees in LUNC as a reward. The blockchain's users can stake Terra LUNA Classic (LUNC) to validators responsible for verifying all transactions within Terra Classic and recording them in blocks. However, the LUNC token’s primary purpose is to control the volatility of Terra's stablecoins in its network. LUNC is Terra 1.0’s native cryptocurrency available for staking and serves as the blockchain's governance token. Validators propose new blocks of transactions, which are then put to the vote twice before being accepted. The Terra Classic network is a Proof of Stake blockchain designed using the Cosmos SDK and leverages the Tendermint consensus protocol. It has helped the Terra 1.0 protocol establish itself as an attractive solution to process payments and further the rapid adoption of blockchain technology and cryptocurrencies among mainstream businesses. Terraform Labs - the firm behind the development of the Terra Classic network, has partnered with numerous payment platforms and enjoys a healthy level of adoption among businesses in the Asia Pacific. The LUNC token is burned or minted based on the changes in demand for the Terra Classic stablecoins to maintain their peg. Unlike other fiat-pegged stablecoins or cryptocurrency-collateralized stablecoins, the Terra Classic blockchain network employs a unique algorithm to manage the supply of stablecoins and keep its one-to-one peg with fiat currencies based on its demand. LUNA Classic (LUNC) is the native token of the Terra Classic blockchain and is used to maintain the price stability of the stablecoins within the ecosystem. Terra Classic is a decentralized, open-source, and public blockchain protocol that employs Proof of Stake consensus to support stablecoins that can enable convenient payments globally. Its native token, formerly known as LUNA, has now been rechristened LUNA Classic (LUNC).

Terra Classic is the rebranded name for the old Terra blockchain, also known as Terra 1.0.

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