Chapter 1: Introduction to Terra (LUNA)

In this review, we delve into Terra (LUNA), a notable player in the blockchain arena.

"In the previous token analysis, I explored Curve DAO Token. If you missed it, you can find it below."

Curve DAO Token Review

Chapter 2: What is Terra?

Terra (LUNA) operates as a blockchain protocol that leverages smart contracts, oracle systems, and stablecoins to foster diverse blockchain applications. Its decentralized framework introduces innovative theories and concepts to the decentralized finance (DeFi) space and the broader cryptocurrency ecosystem. The protocol offers various stablecoin options through a unique price stabilization algorithm that adjusts the money supply to maintain lower transaction fees for users. This algorithm also facilitates smoother and more reliable cross-border transactions.

Established in January 2018 by Daniel Shin and Do Kwon, Terra aims to accelerate the adoption of blockchain technology and cryptocurrency, focusing on price stability and accessibility. Kwon, the CEO of Terraform Labs—Terra's parent company—previously co-founded Ticket Monster (TMON), a leading e-commerce platform in Korea. Shin also launched Fast Track Asia, a startup incubator supporting entrepreneurs in building successful companies. Kwon, who has experience as a software engineer at Microsoft and Apple, founded Anyfi, a decentralized wireless mesh network solutions company.

Chapter 3: Understanding the LUNA Token

The native token of Terra, LUNA, plays a crucial role in stabilizing the prices of the protocol's stablecoins. LUNA holders are also empowered to participate in governance decisions within the network.

Terra has a total supply of 1 billion tokens. If this limit is surpassed, LUNA tokens will be burned until the supply is balanced again. New LUNA tokens are generated as needed to maintain stablecoin prices. The initial token sale attracted significant investments, raising $32 million by August 2018, with 10% of the 385,245,974 tokens allocated to Terraform Labs, and the remaining divided among employees, project contributors, and supporters.

For those looking to securely store their Terra tokens, a hardware wallet is highly recommended. For long-term storage, options like Ledger Nano S, Ledger Nano X, and Trezor Model T are excellent choices, providing robust protection against cyber threats.

Chapter 4: Key Features of Terra

In the previous section, I introduced you to Terra (LUNA) and its foundational elements. Let’s take a closer look at some of Terra's standout features:

• LUNA: The backbone of the network, ensuring stablecoin prices remain consistent. Staking is not possible without LUNA.
• Stablecoins: Terra provides several stable currencies, including TerraUSD (UST) pegged to the U.S. dollar, TerraSDR (SDT) linked to the IMF's SDR, TerraKRW (KRT) connected to the Korean Won, and TerraMNT tied to the Mongolian Tugrik.
• Gas: This is used to facilitate smart contract execution, reducing spam transactions and incentivizing miners.

For instance, like Ethereum, users may opt to pay higher gas fees to prioritize their transactions.

• Mirror Protocol: This feature allows users to create fungible assets ("synthetics") that mirror real-world asset prices.
• Anchor Protocol: This enables holders of Terra stablecoins to earn rewards akin to interest from savings accounts.

Terra (LUNA) has significantly contributed to the market with its decentralized and permissionless characteristics, making it a prime candidate for the digital economy. It offers competitive programmable payments and infrastructure tailored for the development of decentralized applications (DApps) and stablecoins. Furthermore, Terra promotes interoperability by operating on multiple chains, connected through Cosmos IBC, currently utilizing Ethereum and Solana, with plans for further expansion.

Chapter 5: Terra's Proof of Stake and Staking Mechanism

Terra employs a Delegated Proof-of-Stake (DPoS) system, a technology-driven democratic approach that secures the blockchain against centralized threats. DPoS facilitates transaction approvals and block additions via Validators. To become a validator, one must possess a significant amount of LUNA, but users can still participate in staking for passive rewards.

As an advocate of staking, I have previously shared insights on this topic, including links to some relevant YouTube videos:

TRX Staking:

Algo Staking:

Regrettably, recent developments may have jeopardized this protocol's future, which I will discuss in an upcoming article.

Chapter 6: Conclusion and Next Steps

Next week, I will introduce another cryptocurrency, so stay tuned and follow my profile for notifications regarding my latest articles on Medium!

Chapter 7: Video Insights

To further understand Terra (LUNA) and its implications, check out the following videos:

Terra Review: Where is LUNA Heading?! - YouTube

This video provides an analysis of Terra's current standing and future prospects.

Terra (LUNA) Review + Wallet Setup - YouTube

In this video, viewers can learn about Terra's features and how to set up a wallet for secure storage.