Terra is a Blockchain in the Cosmos ecosystem, initially known to many for payment applications such as Chai, Memepay, using Terra’s UST coin to pay. But starting from October 2020, after the Columbus-4 update, Terra has its own Smart contract, officially building an ecosystem.

Terra will be deployed on a variety of commercial platforms, as a medium of exchange when purchasing products and services. The value of the token will be pegged to a fiat currency, such as the US dollar. The reserve token offered by Terra is called LUNA and comes with a fixed supply. The LUNA token generates rewards from Terra’s transactions and thus increases in value through the use of the Terra protocol. As you can see, Terra has the potential to become a real “coin” in the crypto world instead of just a kind of value to be exchanged on exchanges.

What is Project Terra?

Terra is a blockchain project for e-commerce. The project created their own stablecoin for payment and transaction fee reduction. A portion of the transaction fees that will be retained will be put into their stabilization fund, which includes LUNA – the 2nd crypto. LUNA will work to keep Terra stable as a stablecoin.

What is Terra (LUNA)?

One of the unique features of the Terra currency is the way they design the token. Dual token mechanism, with TERRA token and LUNA token at the same time.

LUNA is a collateral or reserve token. Token LUNA is generated when TERRA is traded. The total supply of LUNA is fixed.

Features of Terra

As mentioned above, Terra has a dual token mechanism consisting of TERRA and LUNA.

Stablecoin TERRA:

The TERRA stablecoin community includes: TerraUSD, TerraEUR, TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraSDR respectively with the world’s top currencies USD, EUR, CNY, JPY, GBP, KRW and the IMF common currency is SDR.

It is possible to swap between Terra stablecoins, for example, the exchange rate of TerraUSD to TerraKRW is equal to the exchange rate of USD to KRW.

The value of crypto in the Terra family (TerraUSD, TerraEUR, TerraCNY, TerraJPY, TerraGBP, TerraKRW,…) is determined by the votes of miners in the reserve stabilization fund.

The development team uses algorithms to change the crypto supply of the Terra family. At the same time, the reserve fund from the LUNA token will be used to stabilize the price.

Token LUNA:

• LUNA is considered the mining power of the entire Terra network.
• LUNA has a price stabilization function for Terra stablecoins.

What are LUNA tokens and TERRA tokens used for?

Main Applications of LUNA: Using LUNA to stabilize the price of stablecoin Terra

Terra is used to pay for goods or services provided by e-commerce platforms in Terra’s ecosystem.

Terra is used to reward miners who vote to determine the price of coins in the Terra family.

Development team

Co-Founder Daniel Shin. Co-founder and CEO of Ticket Monster, Korea’s largest e-commerce platform. Daniel is also a co-founder and sits on the board of Fast Track Asia, which has founded and sold companies such as Fast Five and FoodFly. Daniel is a big name in the field of e-commerce. He holds a Bachelor of Arts from the Wharton Bachelor.

Co-Founder Do Kwon. He once founded and operated Anyfi. At Anyfi, Do Kwon has contributed and owns many important patents on distributed networks and networks. He worked as a software engineer at Microsoft and Apple. Do Kwon graduated with a degree in computer science from Stanford.

Evan Kereiakes Responsible for financial research. Evan has 7 years of experience at the Federal Reserve Bank of New York as a Japanese portfolio manager of foreign exchange reserves. He used to be an economist at the US Treasury, with ties to the White House Economic Council. Evan studied engineering at Duke and Illinois universities, and holds an MBA from the University of Chicago.

Conclude

The leading e-commerce platforms in Asia alone account for about $25 billion in merchandise value and over 45 million users. Imagine, when these e-commerce platforms adopt Terra solution and get paid. We will have a huge daily buying volume and of course, the value of the LUNA token will also increase. It is the story of the future, when Terra proves its superiority and is well received by the community, including the e-commerce platform and users.

You can see the price of LUNA here.

Hanh Bui

According to AZCoin News

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