What is Terra Classic (LUNC)?

Terra is a blockchain protocol with a distinctive approach to global payments, utilizing fiat-pegged stablecoins to achieve price stability. The protocol aims to merge the stability and widespread acceptance of fiat currencies with the censorship resistance observed in Bitcoin (BTC), providing a platform for swift and cost-effective settlements. Initiated in January 2018, Terra's development culminated in the official launch of its mainnet in April 2019.

As of September 2021, Terra Classic supports stablecoins pegged to various currencies, including the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket. The protocol envisions expanding its stablecoin offerings with additional options in the future.

A significant development occurred on May 28, 2022, when the genesis block of a new chain was introduced under the name Terra (LUNA), while the original  Terra Classic underwent a rebranding to become Terra Classic. This transition involved renaming the native token from LUNA to LUNA Classic (LUNC) and the stablecoins on the original chain were renamed Terra Classic stablecoins (USTC, KRTC, EUTC). Importantly, the new chain no longer hosts Terra stablecoins.

The introduction of the term "classic" has sparked speculation, with some suggesting a parallel to the Ethereum/Ethereum Classic split in 2017. CEO Do Kwon has linked this transition to the collapse of UST in the spring of 2022, drawing an analogy to Ethereum's DAO hack in 2017.

Who are the founders of Terra Classic?

Founded in January 2018 by Daniel Shin and Do Kwon,  Terra Classic emerged as a project with the vision of accelerating the widespread adoption of blockchain technology and cryptocurrency. Shin and Kwon envisioned achieving this goal by prioritizing aspects of price stability and user-friendliness within the  Terra Classic ecosystem. Do Kwon assumed the role of CEO at Terraform Labs, the company spearheading the development and operations of Terra.

Daniel Shin, before his involvement with  Terra Classic, notably co-founded and led Ticket Monster (TMON), a prominent South Korean e-commerce platform. His entrepreneurial journey also included the establishment of Fast Track Asia, a startup incubator dedicated to collaborating with entrepreneurs in building fully functional companies.

On the other hand, Do Kwon,  Terra Classic co-founder, had previously founded and held the CEO position at Anyfi, a startup specializing in decentralized wireless mesh networking solutions. His professional background extends to roles as a software engineer for tech giants Microsoft and Apple, showcasing his expertise in the technology and software development domains.

Together, Shin and Kwon bring a blend of entrepreneurial experience and technical expertise to the Terra project, underscoring their commitment to driving innovation and facilitating the broader adoption of blockchain and cryptocurrency technologies.

What makes Terra Classic unique?

Terra Classic distinguishes itself through its innovative use of fiat-pegged stablecoins, positioning itself as a blockchain protocol that combines the advantages of cryptocurrencies' borderless nature with the day-to-day price stability inherent in fiat currencies. The protocol achieves and maintains a one-to-one peg through an algorithmic mechanism that dynamically adjusts stablecoin supply in response to demand fluctuations. This is facilitated by incentivizing LUNA token holders to engage in profitable exchanges of LUNA and stablecoins, thereby expanding or contracting the stablecoin supply to align with market demand.

Terra Classic has forged strategic partnerships, particularly in the Asia-Pacific region, emphasizing its commitment to fostering real-world adoption. A notable collaboration is with Chai, a South Korea-based mobile payments application.

Transactions conducted through Chai on e-commerce platforms leverage the Terra blockchain network, with merchants subject to an average 2%-3?e per transaction.

Further strengthening its ecosystem, Terra benefits from the  Terra Classic Alliance, a coalition of businesses and platforms advocating for the widespread adoption of Terra. As of February 2019, the alliance included e-commerce platforms from 10 different countries, boasting a substantial user base of 45 million and a gross merchandise value of $25 billion, showcasing the platform's global reach and influence.

How is the Terra Classic Network secured?

The security of the Terra Classic blockchain is maintained through the implementation of a proof-of-stake consensus algorithm, specifically based on Tendermint. In this consensus mechanism, LUNA token holders play a pivotal role by staking their tokens as collateral, becoming validators responsible for validating transactions on the network. Validators receive rewards in proportion to the amount of LUNA staked. Token holders can also opt to delegate others to validate transactions on their behalf, allowing for broader participation in securing the network while sharing in the generated revenue. To enhance security measures, Terra Classic guides validator nodes, outlining best practices to contribute to the network's overall security.

Shortly after the mainnet launch in May 2019, Terra underwent a comprehensive security audit conducted by CertiK, a firm specializing in blockchain verification and penetration testing. The audit scrutinized various aspects, including the economic model to assess susceptibility to market manipulation, network architecture, and coding language. CertiK's evaluation determined that the "modeling and mathematical reasoning" of the Terra Classic network were deemed sound, though specific comments on the network's performance were not provided. This proactive approach to security audits reinforces Terra's commitment to ensuring a robust and secure blockchain infrastructure for its users.

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