Terra Classic LUNC
About
What Is Terra Classic (LUNC)?
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Development on Terra began in January 2018, and its mainnet officially launched in April 2019. As of September 2021, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik and the International Monetary Fund's Special Drawing Rights basket of currencies — and it intends to roll out additional options.
On May 28, 2022, the genesis block of the new chain was launched to conduct future transactions under the name Terra (LUNA), and the original Terra Chain was rebranded as Terra Classic. The original native token — LUNA has also been renamed as LUNA Classic (LUNC). Moreover, all network stablecoins (UST, KRT, EUT) have been renamed to Terra Classic stablecoins (USTC, KRTC, EUTC). There will be no Terra stablecoins on the new chain.
There is a theory that the additional term “classic” is a reference to the Ethereum / Ethereum Classic split in 2017. According to CEO, Do Kwon, the collapse of UST in the spring of 2022 is the equivalent moment of the Ethereum’s DAO hack that took place in 2017.
What Is Luna Classic (LUNC)?
Luna Classic (LUNC) is the first native token of Terra blockchain released in August 2018. $LUNC existed before the launch of the new chain — now branded Terra (LUNA) — and works with the original code of the Terra ecosystem.
The main function that the native token performed was to absorb the price deviation of the algorithmic stablecoin — $UST. The price of the UST stablecoin was pegged to the US dollar by minting and burning UST tokens to balance the supply and demand of the coin. In May 2022, UST lost its peg and collapsed. The UST stablecoin algorithm created trillions of LUNA tokens, fell into a hyperinflationary spiral, and reduced the value of the original LUNA token by 99%.
Read: The full breakdown of the Terra Crash
What is the difference between Terra (LUNA) and Terra Classic (LUNC)?
Both versions of the token have the right to exist as a result of the implementation of a proposal called Terra Ecosystem Revival Plan 2. The essence of the plan is to split the current blockchain through forking, which created a new chain in the ecosystem, preserving the previous version.
According to the recovery plan, the existing chain and token have been rebranded as Terra Classic. The new LUNA tokens were airdropped to existing holders of LUNA and UST before the depeg and subsequent crash occurred.
Who Are the Founders of Terra Classic?
Terra was founded in January 2018 by Daniel Shin and Do Kwon. The two conceived of the project as a way to drive the rapid adoption of blockchain technology and cryptocurrency through a focus on price stability and usability. Kwon took on the position of CEO of Terraform Labs, the company behind Terra.
Prior to developing Terra, Shin co-founded and headed Ticket Monster, otherwise known as TMON — a major South Korean e-commerce platform. He later co-founded Fast Track Asia, a startup incubator working with entrepreneurs to build fully functional companies.
Kwon previously founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
What Makes Terra Classic Unique?
Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand.
Terra has established a number of partnerships with payments platforms, particularly in the Asia-Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korea-based mobile payments application, in which purchases made using the application on e-commerce platforms are processed via the Terra blockchain network. Each transaction is subject to (on average) a 2%–3% fee charged to the merchant.
In addition, Terra is supported by the Terra Alliance, a group of businesses and platforms advocating for the adoption of Terra. In February 2019, the company announced that e-commerce platforms from 10 different countries, representing a user base of 45 million and a gross merchandise value of $25 billion, were members of the alliance.
How Many Terra Classic (LUNC) Coins Are There in Circulation?
As of August 2022, the total supply of Terra Classic (LUNC) is 6.9T, and there are 6.5T LUNC in circulation.
Where Can You Buy Terra Classic (LUNC)?
Most crypto exchanges supported Terra Luna in the past, and they continue to do so now with Terra Classic (LUNC). Luna Classic is currently available on major platforms, including Binance, KuCoin, Kraken, Huobi Global, PancakeSwap (V2), MEXC and Gate.io.
Want to keep track of LUNC in real-time? Download the CMC mobile app.
Have a look at our crypto glossary.
Technical Details
How Is the Terra Network Secured?
The Terra blockchain is secured using a proof-of-stake consensus algorithm based on Tendermint, in which LUNA token holders stake their tokens as collateral to validate transactions, receiving rewards in proportion to the amount of LUNA staked. Tokenholders may also delegate others to validate transactions on their behalf, sharing in any revenue generated. Terra also offers additional guidance to validator nodes on the best practices for helping to keep the network secure.
In May 2019, shortly after Terra's mainnet went live, blockchain verification and penetration testing firm CertiK completed a security audit of the network. It examined its economic model to test against market manipulation, its architecture and its coding language. CertiK found that the "modeling and mathematical reasoning" of the Terra network were "considered sound," although it would not comment on the blockchain's performance.
AI Analysis
What is the Terra Classic (LUNC) cryptocurrency good for? What are its main use cases?
Terra Classic (LUNC), formerly known as Terra (LUNA), is a cryptocurrency that was created as part of the Terra ecosystem, a decentralized finance (DeFi) platform. Although the Terra ecosystem has undergone significant changes and controversies, I'll outline the original intended use cases and some current applications of LUNC.
Original intended use cases:
- Stability mechanism: LUNC was designed to be a governance token and a stability mechanism for the Terra ecosystem. It helped maintain the stability of Terra's algorithmic stablecoins, such as TerraUSD (UST), by absorbing volatility and providing a mechanism for arbitrage.
- Governance: LUNC token holders could participate in voting on proposals for the development and growth of the Terra ecosystem.
- Staking and validation: LUNC was used for staking and validation on the Terra network, allowing holders to earn rewards and contribute to the security of the network.
Current use cases:
- Community-driven developments: Although the original Terra team has moved on to other projects, the LUNC community continues to develop and maintain the network. Community-driven developments, such as updates to the protocol and new use cases, are still being explored.
- Speculation and trading: LUNC is still traded on various cryptocurrency exchanges, and some traders speculate on its price movements.
- Decentralized applications (dApps): Some dApps, such as decentralized exchanges (DEXs) and lending platforms, have been built on the Terra Classic network, utilizing LUNC as a native token.
- NFT marketplaces: A few NFT marketplaces have been created on the Terra Classic network, allowing users to buy, sell, and trade non-fungible tokens (NFTs) using LUNC.
- Forked projects: Some projects have forked the Terra Classic codebase to create their own blockchain networks, which may utilize LUNC or a variant of the token.
Important note:
The Terra ecosystem has faced significant challenges, including the collapse of the UST stablecoin and the subsequent rebranding of the Terra network to Terra (LUNA) and the creation of a new token, LUNA. As a result, the use cases and value proposition of LUNC have been severely impacted. Investors and users should exercise caution and carefully evaluate the current state of the Terra Classic network before engaging with LUNC.
In summary, while LUNC was originally designed for stability, governance, and staking, its current use cases are mostly community-driven and focused on speculation, trading, and decentralized applications. However, the token's value and utility have been significantly affected by the events surrounding the Terra ecosystem.
What blockchain does Terra Classic use? Is it its own blockchain or built on top of another?
Terra Classic (LUNC) operates on its own independent blockchain, which is a fork of the original Terra blockchain. Here’s a breakdown of its blockchain infrastructure:
Original Terra Blockchain (Pre-Collapse):
- Terra (now called Terra 2.0) was originally a Cosmos SDK-based blockchain (like many other blockchains in the Cosmos ecosystem).
- It used the Tendermint BFT consensus mechanism for fast and secure transactions.
Terra Classic (LUNC) After the Fork:
- After the collapse of Terra (LUNA) in May 2022, the community forked the original blockchain to create Terra Classic (LUNC).
- LUNC continues to use the same Cosmos SDK-based blockchain as the original Terra, with the same Tendermint consensus.
- It is not built on top of another blockchain (like Ethereum or Solana) but operates as a standalone blockchain.
Key Features of Terra Classic’s Blockchain:
- Consensus: Tendermint BFT (Byzantine Fault Tolerant).
- Smart Contracts: Supports smart contracts via CosmWasm (similar to Ethereum’s EVM but for Cosmos-based chains).
- Interoperability: Can connect with other Cosmos chains via IBC (Inter-Blockchain Communication).
Summary:
Terra Classic (LUNC) runs on its own independent blockchain, which is a fork of the original Terra blockchain (Cosmos SDK-based with Tendermint consensus). It is not built on top of another blockchain but operates as a standalone network.
Is Terra Classic programmable? Does it support smart contracts or decentralized applications?
Terra Classic (LUNC) is not programmable in the same way as Ethereum or other smart contract platforms. It was originally designed as a stablecoin-focused blockchain (Terra) with a focus on payments and DeFi applications, but it did not natively support smart contracts or decentralized applications (dApps) before its collapse in May 2022.
Key Points About Terra Classic's Programmability:
No Native Smart Contract Support
- The original Terra blockchain (now Terra Classic) did not have a built-in smart contract platform like Ethereum's Solidity or Cosmos' CosmWasm.
- It relied on external solutions (e.g., Anchor Protocol for lending) rather than on-chain smart contracts.
Post-Collapse Developments
- After the Terra ecosystem collapsed, some developers proposed adding smart contract functionality to Terra Classic (LUNC) through CosmWasm (a smart contract framework for Cosmos-based chains).
- However, these proposals have not been widely adopted, and LUNC remains primarily a transactional chain rather than a smart contract platform.
Comparison to Terra 2.0 (LUNA)
- The new Terra 2.0 (LUNA) blockchain (rebranded after the collapse) does support smart contracts via CosmWasm, allowing for dApp development.
- Terra Classic (LUNC) has not followed this path, remaining focused on its original use case.
Conclusion:
- Terra Classic (LUNC) does not natively support smart contracts or dApps.
- If you're looking for a programmable Terra-based blockchain, Terra 2.0 (LUNA) is the better option.
- For LUNC, most development efforts remain focused on governance, tokenomics, and transactional improvements rather than smart contracts.
Would you like details on how Terra 2.0 (LUNA) implements smart contracts?
How fast are Terra Classic transactions? What is the typical confirmation time and throughput (transactions per second)?
Terra Classic (LUNC) transactions are processed on a blockchain that uses a Proof-of-Stake (PoS) consensus mechanism, which generally allows for faster transaction speeds compared to Proof-of-Work (PoW) blockchains like Bitcoin.
Transaction Speed & Confirmation Time
- Block Time: ~5–6 seconds (similar to the original Terra blockchain).
- First Confirmation: Typically within 5–10 seconds (one block).
- Finality: Usually achieved within 3–5 confirmations (~15–30 seconds), depending on network conditions.
Throughput (Transactions Per Second - TPS)
- Theoretical Max TPS: ~10,000 TPS (similar to Cosmos SDK-based chains).
- Real-World TPS: Typically 1,000–5,000 TPS under normal conditions, depending on network congestion.
Comparison to Other Blockchains
- Faster than Bitcoin (~7 TPS, ~10-minute block time).
- Slower than Solana (~2,000–50,000 TPS) but faster than Ethereum (~15–30 TPS pre-L2 scaling).
Factors Affecting Speed
- Network Congestion: High demand can slow down confirmations.
- Gas Fees: Low fees (often <$0.01 per transaction) make microtransactions feasible.
- Staking Participation: More validators improve efficiency.
Would you like details on how to optimize transaction speed or gas fees?
How much data can I store on the Terra Classic blockchain? Does it support on-chain data storage?
The Terra Classic (LUNC) blockchain primarily focuses on financial transactions and smart contracts (via Cosmos SDK and CosmWasm), but it does not natively support large-scale on-chain data storage like some other blockchains (e.g., IPFS, Arweave, or Filecoin).
Data Storage Limits on Terra Classic
Transaction Data (Small Amounts)
- You can store small amounts of data in transactions (e.g., metadata, notes, or small JSON blobs).
- The maximum transaction size is limited by the blockchain’s consensus rules (typically a few KB per transaction).
Smart Contract Storage (CosmWasm)
- If you deploy a CosmWasm smart contract, you can store data within the contract’s state.
- However, storage costs are metered, and large datasets may become expensive.
- The total storage capacity is shared among all contracts, so excessive storage could lead to performance issues.
Off-Chain Storage (Recommended for Large Data)
- For large datasets, it’s better to store data off-chain (e.g., IPFS, AWS S3, or a decentralized storage network) and only store a hash or reference on-chain.
- This is the standard approach in most blockchains to avoid bloating the ledger.
Comparison with Other Blockchains
- Ethereum (IPFS, Filecoin): Supports off-chain storage with on-chain references.
- Arweave: Permanent storage with on-chain hashes.
- Terra Classic (LUNC): Best for small metadata or contract state, not large files.
Conclusion
- Small data? Yes, you can store it in transactions or smart contracts.
- Large data? Use off-chain storage (IPFS, Arweave) and reference it on-chain.
Would you like help designing a storage solution for your use case?
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