What is Terra Luna?

For those wondering what Terra LUNA is, the coin is used as a protocol token to reduce the volatility of the stablecoins on the Terra blockchain. It is part of a dual token system with terraUSD; to mint more terraUSD, the equivalent value of LUNA must be burned.

What is Luna and how does it work?

Luna is the variable counterweight to the Terra stablecoin and absorbs its volatility. To understand how Terra works, envision the entire Terra "economy" to consist of a Terra pool and a Luna pool, which are used to adjust the price via incentives for network participants.

What happened to Terra Luna?

In May 2022, Terra Luna crashed and burned, wiping out tens of billions of dollars from the pockets of both retail and institutional investors. At its peak, which was just a month earlier, Terra’s native governance token Luna was trading at $120, and the Terra blockchain overtook Solana to become the sixth largest cryptocurrency by market cap.

How much is Terra (Luna) worth?

As of 29 November 2022, Terra (LUNA) was trading at $1.58, while Terra Classic (LUNC) was worth $0.0001606. Previously, the Terra Luna community approved a revival plan that involves a Terra Luna hard fork from the failed token, the creation of a new blockchain Terra 2.0 and a new token .