Cryptocurrency Q&A
What does Luna token do?
What does Luna token do?
GeishaElegance
Fri Oct 25 2024
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5
answers
855
I heard about Luna token and I'm curious about its function and utility. I want to understand what role it plays and how it can be used.
5 answers
IncheonBeautyBloom
Sun Oct 27 2024
Terra LUNA served as the native token of the network, fulfilling dual roles as both a staking and governance asset.
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Riccardo
Sat Oct 26 2024
To participate in the governance process, users stake their LUNA tokens. This process earns them a seat in the governance structure and the opportunity to become validators, which in turn grants them rewards.
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Caterina
Sat Oct 26 2024
Staking LUNA not only allows users to influence the direction of the network but also provides them with financial incentives.
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IncheonBeautyBloom
Sat Oct 26 2024
In addition to staking, users have the option to burn their LUNA tokens. This action is used to mint Terra's UST token, a stablecoin designed to maintain a constant value relative to a specific fiat currency.
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HanjiArtistryCraftsmanshipMasterpiece
Sat Oct 26 2024
Alternatively, users can burn LUNA to mint a token tied to their local fiat currency, offering a decentralized and blockchain-based alternative to traditional financial systems.
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