Terra Classic (LUNC)
Rebranded from Terra, A Public Blockchain Based on Tendermint.- Rebranded from Terra, Terra Classic is a public blockchain based on Tendermint. It is home to the algorithmic stablecoin TerraClassicUSD (USTC).
- After the depeg of USTC in May 2022, the community behind Terra Classic decided to create a new blockchain without the algorithmic stablecoins called Terra 2.0. The new LUNA tokens were airdropped to the old users that were affected by the depeg event.
- USTC's stability mechanism depends on arbitrage activities by users. For instance, when the price of USTC falls to $0.95 in secondary markets, users can purchase 100 USTC with $95 on exchanges, and redeem these tokens on the Terra platform for LUNC tokens worth $100. If the price of 1 USTC goes above $1, users can purchase USTC on the Terra Classic platform and sell on exchanges for a profit.
- LUNC is the native token of the project. The current use cases for LUNC include:
- Staking: Users stake LUNC to validators who record and verify transactions on the blockchain in exchange for rewards from transaction fees.
- Governance: Token holders can participate in treasury governance and stakers can participate in proposals and voting.
- Paying Fees: Users use LUNC for processing transactions and storing data.
- The project consists of the following major components working in conjunction:
- TerraClassicUSD (USTC): A native stablecoin on the blockchain. Its stability mechanism depends on arbitrage activities by users. USTC was severely depegged in May 2022.
- Terra SDK: A full SDK that enables developers to build in the Terra ecosystem with AssemblyScript.
- Terra Station: Terra Station is the official wallet of Terra, allowing transactions, smart contract testing and interactions, and other functions.
- Circulating and total supply data.
- As at May 31st 2022, the total token supply of LUNC token is 6,906,711,034,142. The current circulating supply is ~6,539,430,000,000 (94.7% of the total token supply).