What is Terra?

Terra is a decentralized blockchain platform designed to support stablecoins and decentralized finance (DeFi) applications. Originally launched in 2018 by Terraform Labs, Terra aimed to create algorithmic stablecoins pegged to fiat currencies, facilitating efficient global payments. However, after the collapse of Terra’s original LUNA and UST in 2022, a new blockchain, Terra 2.0, was launched to continue development, while the original network was rebranded as Terra Classic (LUNC). The new LUNA token is used for staking, governance, and securing the Terra 2.0 ecosystem.

How is Terra useful?

Terra provides a scalable and developer-friendly blockchain for DeFi applications, payments, and stablecoin integrations. Despite past challenges, Terra 2.0 continues to support smart contract development, decentralized applications (DApps), and governance mechanisms. The LUNA token plays a critical role in network security, staking, and community-driven decision-making. Terra remains a platform for blockchain innovation, with ongoing projects focusing on new financial tools, lending protocols, and decentralized applications.

How does Terra work?

Terra 2.0 operates as an independent blockchain, separate from the original Terra Classic network. It utilizes a proof-of-stake (PoS) consensus mechanism, where validators stake LUNA tokens to secure the network and validate transactions. Unlike its predecessor, Terra 2.0 does not include algorithmic stablecoins, focusing instead on smart contract applications and DeFi growth. Governance decisions are community-driven, with LUNA holders voting on network upgrades and proposals.

Terra milestones

• Launch of Terra 2.0: Introduced after the collapse of Terra Classic (LUNC) to continue ecosystem development.

• Removal of Algorithmic Stablecoins: Shifted focus from UST to a broader DeFi ecosystem.

• LUNA Airdrop to Previous Holders: Distributed new LUNA tokens to former LUNC and UST holders.

• Ecosystem Redevelopment: Encouraged developers to build new applications on Terra 2.0.

• Community-Driven Governance: Allowed LUNA holders to vote on network upgrades and proposals.

Terra continues to rebuild its ecosystem, focusing on DeFi innovation, decentralized applications, and governance improvements.

Buy Terra (LUNA) on BITmarkets.