What is Terra Luna V2

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About Terra

Key Points

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic.
Terra Classic is home to the algorithmic stablecoin TerraClassicUSD (UST), which crashed in May 2022.
The new Terra blockchain continues the legacy of Terra Classic without the UST stablecoin.
Terra was founded in January 2018 by Daniel Shin and Do Kwon.
The LUNA token will be airdropped across Luna Classic stakers, holders, residual UST holders, and essential Terra Classic app developers.
Terra has a supply of 1 billion tokens, distributed among various groups.
The Terra blockchain is secured

About Terra: Pioneering the Future of Decentralized Finance

Introducing Terra 2.0 (LUNA): A Revolutionary Leap Forward

Terra (LUNA) is a public blockchain protocol that has evolved from Terra Classic, the native platform of the algorithmic stablecoin TerraClassicUSD (UST). Initially, the UST was collateralized by the now-renamed LUNC token, but it suffered a catastrophic collapse in May 2022, triggered by a bank run. This devastating event led to a drastic devaluation of LUNA, effectively rendering it worthless, and ultimately culminated in the launch of a new chain, resulting in the bifurcation of Terra Classic and Terra. For a comprehensive analysis of the Terra crash, click

here

.

The development of Terra Classic commenced in January 2018, with the blockchain officially launching in April 2019. This innovative project sought to merge the price stability and widespread adoption of fiat currencies with the censorship-resistant attributes of Bitcoin (BTC), while providing rapid and affordable settlement solutions through its UST stablecoin. Notably, Terra Classic offered a range of stablecoins pegged to prominent currencies, including 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 embarks on a fresh journey, building upon the legacy of Terra Classic, albeit without the UST stablecoin. With the steadfast support of the LUNA community, affectionately known as “LUNAtics,” the platform will continue to evolve, refining its world-class user experience (UX) and user interface (UI) that propelled Terra Classic to an impressive second place in total value locked (TVL) at its zenith. Furthermore, numerous decentralized applications (DApps) have pledged to migrate to Terra, ensuring the continuity of their operations.

The Visionaries Behind Terra: Meet the Founders

In January 2018, Daniel Shin and Do Kwon co-founded Terra, a pioneering project conceived to accelerate the widespread adoption of blockchain technology and cryptocurrency. By prioritizing price stability and usability, the duo aimed to bring about a seismic shift in the industry. As the CEO of Terraform Labs, the company driving Terra’s vision, Kwon played a pivotal role in shaping the project’s trajectory.

Prior to conceiving Terra, Shin co-founded and helmed Ticket Monster, also known as TMON, a prominent South Korean e-commerce platform. He subsequently co-founded Fast Track Asia, a startup incubator that collaborates with entrepreneurs to nurture fully fledged companies.

Prior to his current endeavors, Kwon founded and helmed Anyfi, a pioneering startup that specializes in decentralized wireless mesh networking solutions. His impressive resume also boasts stints as a software engineer at tech giants Microsoft and Apple.

Following the collapse of Terra Classic, Do Kwon unveiled a revival plan, which ultimately culminated in the hard fork of Terra Classic and Terra. However, his proposal drew criticism from prominent figures, including Binance founder Changpeng Zhao and Vitalik Buterin, as well as disgruntled UST investors. Despite the backlash, the community voted in favor of the plan, and Terra Classic underwent a hard fork, giving rise to its new Terra blockchain on May 27, 2022.

Unveiling the Pioneering Terra 2.0: A Revolutionary Leap Forward

Terra will forge ahead, sans its algorithmic stablecoin UST, with the primary objective of preserving the Terra ecosystem, which boasts a thriving community of hundreds of developers diligently working on diverse decentralized applications. The LUNA token will be airdropped to a broad spectrum of recipients, including Luna Classic stakers, holders, residual UST holders, and essential Terra Classic app developers. Notably, the wallet of Terra Foundation Labs has been removed from the airdrop event, thereby rendering Terra a fully community-owned chain.

The airdrop will be executed based on two snapshots, one captured prior to the Terra Classic crash (May 7) and another following the event (May 27). The eligibility criteria for the airdrop are as follows:

What Is the Circulating Supply of Terra (LUNA) Coins?

Terra (LUNA) boasts a total supply of 1 billion tokens, slated for distribution as follows:

Here is the polished version:

Developer Mining Program: 8%
Earn a pro-rata share of mining program proceeds, quarterly for 4 years, based on Total Value Locked (TVL).
Developer Alignment Program: 1.5%
Protocol teams, live in Terra Classic, receive a weighted allocation based on the last 30-day TVL from the pre-attack snapshot, with a 1-year cliff and 3-year vesting thereafter. Accommodations will be made for apps where TVL is not applicable.
Emergency Allocation to App Developers: 0.5%
Providing immediate runway for app developers to build out their products, with a commitment to return funds if the product is not launched within 1 year.
Community Pool: 20%
Controlled by staked governance.
Pre-attack LUNA Holders: 35%
All bonded/unbonding LUNA, minus TFL, at the pre-attack snapshot; staking derivatives included.
For wallets with < 10k LUNA: 30% unlocked at genesis; 70% vested over 2 years with a 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%
A 500K whale cap, covering up to 99.7% of all holders but only 26.72% of aUST.
30% unlocked at genesis; 70% vested over 2 years thereafter with a 6-month cliff.
Post-attack LUNA Holders: 10%
Staking derivatives included.
30% unlocked at genesis; 70% vested over 2 years thereafter with a 6-month cliff.
Post-attack UST Holders: 15%
30% unlocked at genesis; 70% vested over 2 years thereafter with a 6-month cliff.

Definitions:

A “pre-attack” snapshot will be captured at Terra Classic block 7544910, corresponding to 2022.05.07 22:59:37+08:00.
A “post-attack” snapshot will be taken at Terra Classic block 7790000, corresponding to 2022.05.27 00:38:08+08:00.

At genesis, all tokens that are locked or vesting are staked, and must undergo unbonding to attain liquidity.

Moreover, Terra has pledged to eliminate the remaining 1 billion UST from the community pool, thereby alleviating the outstanding debt burdening the Terra ecosystem. The highly anticipated LUNA airdrop is slated to take place on May 28, 2022, at 06:00 GMT.

The Terra Network’s Security Mechanisms: A Robust Framework

The Terra blockchain is secured through a proof-of-stake consensus algorithm, leveraging Tendermint, where LUNA token holders stake their tokens as collateral to validate transactions, earning rewards proportionate to the amount of LUNA staked. To ensure network security, Terra will offer staking rewards of 7% annual inflation, thereby aligning the interests of validators with the long-term prosperity of the Terra ecosystem.

Where to Acquire Terra 2.0 (LUNA): A Comprehensive Guide

A multitude of prominent centralized exchanges, including Huobi, Bitrue, Bitfinex, KuCoin, Gate.io, Bybit, and LBank, have pledged to list the novel LUNA token, with additional platforms anticipated to follow suit in the near future.

Are you considering investing in LUNA or exploring other prominent cryptocurrencies like Bitcoin? CoinMarketCap’s educational platform, Alexandria, offers a comprehensive resource to enlighten you on the world of crypto and guide you through the process of acquiring your first digital assets.

Assets Held as of the May 7 Snapshot:

Luna Classic (LUNC), inclusive of staking derivatives
Holdings of less than 500,000 aUST (UST deposited in Anchor)

Asset Holdings as of the May 27 Snapshot:

The venerable Luna Classic (LUNC), inclusive of its staking derivatives
UST (TerraUSD)

At Genesis, a substantial 30% of the LUNA airdrop will be instantly accessible to pre-attack users who held wallets with less than 10,000 LUNA (including staking derivatives) or had deposited UST in Anchor, as well as post-attack users who possess any amount of LUNA (including staking derivatives), UST, or a combination of both.

Moreover, the vested LUNA allocated during the airdrop will be automatically delegated to Terra validators. Users are at liberty to modify their delegator and will be eligible to receive staking rewards on their vested LUNA, although this will be subject to a six-month vesting period. For a comprehensive understanding of the Terra (LUNA) airdrop, please refer to this informative article by Terra.

Associated Resources:

Delve into the world of USD Coin, a stalwart among trusted stablecoins in the market.
Explore Avalanche, a pioneering layer-one blockchain.
Dive into the comprehensive guide to the Terra ecosystem on Alexandria, CoinMarketCap’s premier online educational resource.
Stay abreast of LUNA prices in real-time? Download the CoinMarketCap mobile app for seamless tracking.
Need to convert LUNA’s current price to your preferred fiat currency? Utilize CoinMarketCap’s intuitive exchange rate calculator.
Stay informed about the transformative impact of stablecoins on the payments industry through CoinMarketCap’s education portal — Alexandria.