Terra Luna Explained

The financial ecosystem is a collection of different people, organizations, processes, and systems that let us buy and sell things, use money, save it, invest it, and everything related to finance. And similarly, the crypto space needs an ecosystem. And here comes the Terra.

What Is Terra?

Terra is a next-gen public blockchain protocol deploying a suite of algorithmic decentralized stable coins which underpin a thriving ecosystem that brings DeFi to the masses. It is an ecosystem of many different things and has many uses. And the main use case is in payment processing and their stable coins. It is powered by its native token, LUNA. 

Proof of Stake(PoS)

The entire ecosystem is based on proof-of-stake blockchain that is intended to maximize the potential advantages of crypto for the financial world to focus on both a mass payment processing system and a creation of a useful stable coin.


in 2018, Do Kown and Daniel Shin from Korea founded the company Terra. Companies like Binance Labs, OKEx, Dunamu & Partners, and Huobi Capital have invested in the platform. 

Luna Token

The Terra ecosystem holds two assets at its heart. The native network coin, Luna, and the stable coin, UST. The Luna token has many use cases like:

  • It is maintains the stable value of Terra by holding the price of Terra stable coins at exactly $1. 
  • The token is used for staking, governance, and collateral for the network’s algorithmic stable coins.
  • The token is responsible for the stability of Terra stable coins.

The coin has a dynamic supply of more than 1 billion coins. Luna now holds the 12th largest position by market capitalization. Terra has issued many stable coins like TerraUSD (UST), TerraJPY, TerraCNY, TerraGBP, TerraEUR, and TerraSDR.

Should You Invest?

The big question that comes into play is, should you invest in Luna? Big crypto investors have said that only a handful of these projects will exist in the future. And the cryptos that hold an underlying value or asset will be the future. Terra has an underlying asset, and it is already solving a big problem. Investing in the coin depends on you. If we look at the fundamentals and use cases, Luna can be a good investment.

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