What is Terra Luna (Luna)?

For those wondering what Terra LUNA is, the coin is used as a protocol token to reduce the volatility of the stablecoins on the Terra blockchain. It is part of a dual token system with terraUSD; to mint more terraUSD, the equivalent value of LUNA must be burned.

What is terrausd (UST) and Luna?

TerraUSD (also known as UST) and Luna are two sister coins on the same network. Terra is a blockchain network, similar to Ethereum or Bitcoin, that produces Luna tokens. The network was created in 2018 by Do Kwon and Daniel Shin of Terraform Labs. Terraform Labs created the UST coin to be an algorithmic stablecoin on the Terra network.

What is a Luna coin?

The old LUNA coin was part of a dual-token system along with Terra’s US dollar-pegged stablecoin Terra USD (UST). Terra USD is an algorithmic stablecoin, which means that its peg to the US dollar was ensured by algorithms and game theory, using a series of smart contracts to keep the price at $1.

Is Terra Luna a stablecoin?

Terra Luna cryptocurrency can be somewhat confusing, as not only does it have its own platform token, the LUNA token, but it also has a whole family of Terra stablecoins, known in its group form as TerraSDR. There is also confusion over how Terra stablecoins are more stable than other stablecoins in the market.