Three days since launch and the new version of LUNA cryptocurrency is exhibiting massive price swings becoming gamblers’ paradise. After the airdrop last Saturday, MEXC listed LUNA 2.0 (LUNA/USDT) with an opening price of 0.5 which then swung between 5.18 to 19.5 USDT.
What is Terra 2.0 (LUNA)?
Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Terra Classic is home to the algorithmic stablecoin TerraClassicUSD (UST). Luna 2.0 is now named LUNC token collateralized UST, which crashed in a bank run in May 2022. That devalued LUNA to virtually zero and caused a launch of a new chain — resulting in Terra Classic and Terra.
The development of Terra Classic launched in January 2018 and the blockchain launched in April 2019. It attempted to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin and offer fast and affordable settlements through its UST stablecoin. Terra Classic offered stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies.
The new Terra blockchain continues the legacy of Terra Classic without the UST stablecoin. It will keep building with the help of the LUNA community dubbed “LUNAtics” and evolve the world-class UX and UI that brought Terra Classic up to second place in total value locked (TVL) at its peak. Many DApps have agreed to migrate to Terra to continue their functionality.
What Makes Terra 2.0 Unique?
Terra will continue without its algorithmic stablecoin UST and aims to preserve the Terra ecosystem with hundreds of developers working on different decentralized applications. The LUNA 2.0 token will be airdropped across Luna Classic stakers, holders, residual UST holders and essential Terra Classic app developers. Terra removed the wallet of Terra Foundation Labs for the airdrop event, making Terra a fully community-owned chain.
The airdrop will be carried out according to two snapshots taken, one before the Terra Classic crash (May 7) and one after it (May 27). The eligibility for the airdrop is as follows:
- Holding the following assets on the May 7 snapshot:
Luna Classic (LUNC) (including staking derivatives)
Less than 500k aUST (UST deposited in Anchor)
- Holding the following assets on the May 27 snapshot:
Luna Classic (LUNC) (including staking derivatives)
UST
At Genesis, 30% of the LUNA airdrop will be immediately available to pre-attack users with wallets that had less than 10k LUNA (including staking derivatives) or deposited UST in Anchor, and post-attack users with any quantity of LUNA (including staking derivatives), UST, or both.
LUNA 2.0 Token
Terra (LUNA) has a supply of 1 billion tokens. It will be distributed as follows:
- Developer mining program: 8%, Essential app developers earn a share of the mining program proceeds pro-rata to the amount of TVL every quarter for 4 years.
- Developer alignment program: 1.5%, Protocol teams that were live in Terra Classic divide this allocation weighted by the last 30 day TVL from Pre-attack snapshot – 1 year cliff, 3 year vesting thereafter. Accommodations will be made for apps where TVL is not applicable.
- Emergency allocation to app developers: 0.5%, Immediately after network launch to provide for runway while they build out product. Commit to returning funds if product has not been launched in 1 year.
- Community pool: 20%, controlled by staked governance
- Pre-attack LUNA holders: 35%, all bonded / unbonding Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included
- For wallets with <10k Luna: 30% unlocked at genesis; 70% vested over 2 years with 6 month cliff
- For wallets with <1M Luna: 1 year cliff, 2 year vesting thereafter
- For wallets with >1M Luna: 1 year cliff, 4 year vesting thereafter
- Pre-attack aUST holders: 10%
- 500K whale cap – covers up to 99.7% of all holders but only 26.72% of aUST
- 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
- Post-attack LUNA holders: 10%
- Staking derivatives included
- 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
- Post-attack UST holders: 15%
- 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
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. Terra will incentivize network security by providing staking rewards of 7% annual inflation. This is to align the interest of validators with the long-term success of the Terra ecosystem.
Join MEXC and Start Trading Today!
