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What is Terra Classic (LUNC)?

Terra Classic basic info

Name:Terra Classic
Ticker:
Introduction:

What is Terra Classic?

Terra Classic originated as Terra (LUNA), a blockchain protocol initiated in January 2018 with the mainnet launching in April 2019. Terra aimed to use fiat-pegged stablecoins for facilitating a globally price-stable payments system. According to its white paper, the project sought to blend the censorship resistance of Bitcoin (BTC) with the price stability and broad adoption of fiat currencies. It even offered various stablecoins tied to the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies.

However, in May 2022, a critical turning point occurred. The U.S. dollar-pegged stablecoin UST collapsed, leading to a crisis within the Terra ecosystem. Drawing parallels to Ethereum's DAO hack in 2017, CEO Do Kwon likened this collapse to a moment that demanded reevaluation and evolution. As a result, the genesis block of a new chain under the name Terra (LUNA) was launched, and the original Terra Chain was renamed Terra Classic. In this transformation, all native tokens and stablecoins also underwent rebranding. The original LUNA token became LUNA Classic (LUNC), and stablecoins like UST, KRT, and EUT were renamed as USTC, KRTC, and EUTC, respectively.

The term "Classic" in Terra Classic may be a nod to the Ethereum/Ethereum Classic split, which was another defining moment in the cryptocurrency space. Much like how Ethereum Classic carried forward the original Ethereum chain, Terra Classic has been adopted and maintained by a community of devoted supporters, serving as a testament to the resilience and adaptability inherent in decentralized systems.

Resources

Official Document: https://docs.terra.money/

Official Website: https://www.terra.money/

How Does Terra Classic Work?

In the Terra Classic ecosystem, LUNC serves as the backup token for the newly rebranded USTC stablecoin. This relationship means that any appreciation in the value of LUNC could potentially help USTC regain its peg to the U.S. dollar. A crucial development in the Terra Classic ecosystem has been the introduction of the 1.2% tax burn proposal by a group known as the Terra Rebels, who are committed to the revival of LUNC. This proposal aims to eliminate 1.2% of each LUNC transaction from the circulating supply, thereby creating a deflationary pressure on the token.

Interestingly, this tax is not applied to swapping activities between USTC and LUNC, allowing for greater fluidity and ease in trading these assets. This new mechanism has gained considerable traction and has been integrated by several centralized exchanges (CEXs).

This tax burn strategy not only serves to decrease the circulating supply of LUNC but also plays a role in stabilizing the USTC stablecoin. By influencing the demand and supply mechanics, it is designed to help USTC attain and maintain its intended peg. The effort illustrates how Terra Classic is continually innovating its mechanisms to ensure stability, backed by a community-driven approach.

What is Terra Classic Token (LUNC)?

LUNC, also known as Luna Classic, is the residual token from the original Terra Luna project, which was rebranded following the collapse of the UST/Luna ecosystem and the initiation of a new Terra chain. Functioning as an ERC-20 token, LUNC has a circulating supply of 5.8 trillion tokens.

The Terra Crash

The Luna-Terra ecosystem, once a shining star in the crypto universe, experienced a catastrophic collapse that has been likened to the infamous Mt. Gox debacle of 2014. At its peak, the native asset of the Terra blockchain, LUNA, was trading at $116, but in a shocking turn of events, it plummeted to under $1 a token, erasing $40 billion in value. The failure of Terra's algorithmic stablecoin, UST, triggered a "death spiral" that led to the LUNA token losing 99% of its value. The stablecoin, which was supposed to be pegged to the U.S. dollar, fell to mere cents, causing a loss of confidence among investors and leading to a mass sell-off.

The core issue that led to Terra's downfall was its lack of transparency and the inherent flaws in its algorithmic stablecoin, UST. According to experts, the project aimed to create a stablecoin infrastructure robust enough to rival Ethereum's dApp ecosystem and compete directly with fiat currencies. However, the algorithmic model of UST was under-collateralized, making it vulnerable to market pressures. The tipping point came when about $2 billion worth of UST was unstaked from the Anchor Protocol and sold off, pushing the price of UST down to $0.91. This was compounded by a broader market crash, leading to a de-pegging of UST from its $1 value. The total value of UST could not be redeemed against the rapidly falling LUNA, causing a loss of faith in both assets.

The disaster has sparked a renewed focus on the need for more robust systems and has caught the attention of policymakers and regulators who are now more motivated to bring stability and consumer protection to the crypto market. Many believe that the collapse of Terra serves as a cautionary tale for the crypto industry, emphasizing the need for transparency, over-collateralization, and robust economic models to withstand extreme market conditions.

The Luna-Terra crash serves as a stark reminder of the risks involved in the crypto space, especially with algorithmic stablecoins. It has prompted industry leaders to vow to learn from its failures, but the event will likely have long-lasting implications, not just for Terra and its investors, but for the broader crypto industry as well.

Conclusion

In conclusion, Terra Classic is a rebranded version of Terra (LUNA), born out of a crisis that collapsed its original stablecoin, UST. With new features like a 1.2% tax burn, it aims for a fresh start and greater stability. The crash serves as a cautionary tale for the crypto industry, highlighting the importance of robust economic models and transparency. Despite past challenges, Terra Classic embodies the resilience and adaptability of decentralized systems.

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Current price:
All-time high:$119.18
All-time low:$0.{4}1675

LUNC supply and tokenomics

Circulating supply:5,456,530,000,000 LUNC
Total supply:6,794,537,545,224.58 LUNC
Max supply:0 LUNC
Market cap:$508.45M
Fully diluted market cap:$633.13M
Token allocation:
Project Backers
26.00%
Employees and Contributors
20.00%
Terra Alliance
20.00%
Price Stability Reserves
20.00%
Terraform Labs
10.00%
Genesis Liquidity
4.00%
Tokenomics:

Uniqueness

Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand.

Terra has established a number of partnerships with payments platforms, particularly in the Asia-Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korea-based mobile payments application, in which purchases made using the application on e-commerce platforms are processed via the Terra blockchain network. Each transaction is subject to (on average) a 2%–3% fee charged to the merchant.

In addition, Terra is supported by the Terra Alliance, a group of businesses and platforms advocating for the adoption of Terra. In February 2019, the company announced that e-commerce platforms from 10 different countries, representing a user base of 45 million and a gross merchandise value of $25 billion, were members of the alliance.

Token utility

LUNC stands for Terra Luna Classic. Luna Classic (LUNC) is the original Terra blockchain's native coin left behind LUNA after Terra rebranded to Terra 2.0 and the collapse of UST/LUNA. Terra is a decentralized blockchain based on Cosmos founded by Do Kwon in 2018, hosting stablecoins on its network.

Its role was to serve as a twin token to absorb any price deviation of the blockchain’s algorithmic stablecoin, terraUSD (UST). UST was supposed to keep its price pegged to the U.S. dollar by creating (minting) and (destroying) burning UST tokens to balance the stablecoin’s supply and demand at a $1 price peg.

Actually, LUNC had four different roles specifically in the original Terra network:

1. A method to pay for transaction fees in the Terra network.
2. A mechanism for maintaining Terra’s stablecoin peg.
3. Staking in Terra’s delegated proof of stake (DPoS) to validate network transactions.
4. Participation in the platform’s governance by adding to and voting on proposals when it comes to changes in the Terra network.

Links

Buy Terra Classic for $1Buy LUNC now

What is the development prospect and future value of LUNC?

The market value of LUNC currently stands at $508.45M, and its market ranking is #128. The value of LUNC is widely recognized by the market. When the bull market comes, the market value of LUNC will likely continue to increase.

Moreover, if LUNC can play a greater role in practical applications, such as Terra Classic builders fully leveraging the potential of LUNC, partnering with more businesses, and increasing its user base, the long-term value of LUNC will be significantly enhanced.

What will the price of LUNC be in 2025?
Based on LUNC's historical price performance prediction model, the price of LUNC is projected to reach $0.0001325 in 2025.
What will the price of LUNC be in 2030?
In 2030, the LUNC price is expected to change by -19.00%. By the end of 2030, the LUNC price is projected to reach $0.0002068, with a cumulative ROI of +139.85%.
Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of LUNC and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

Is LUNC worth investing or holding? How to buy LUNC from a crypto exchange?

If you want to buy LUNC, the following information may be helpful for your investment decisions:
In the last 7 days, the price of LUNC has fallen by -4.20%, leading to negative returns for most LUNC investors. The market is currently pessimistic about the price trend of LUNC.
It is important to note that the current price of LUNC has retreated by -100.00% from its all-time high. This coin is currently considered high-risk, and while its price may rebound in the future, there is significant uncertainty.
Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.
To decide whether LUNC is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.
Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in LUNC or any cryptocurrency comes with certain risks and uncertainties.
Regardless of your outlook on the development prospects and future trends of LUNC, if you want to buy or sell LUNC, you can consider Bitget for your trading needs. The best place to buy LUNC is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.
Investing in Terra Classic has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy Terra Classic. Here's a step-by-step guide on how to buy Terra Classic on Bitget.

How to get Terra Classic through other methods?

Using cash to buy Terra Classic is not the only way to obtain Terra Classic. If you have the time to spare, you can get Terra Classic for free.
Learn how to earn Terra Classic for free through the Learn2Earn promotion.
Earn free Terra Classic by inviting friends to join Bitget's Assist2Earn promotion.
Receive free Terra Classic airdrops by joining ongoing challenges and promotions.
All crypto airdrops and rewards can be converted to Terra Classic through Bitget Convert, Bitget Swap, or spot trading.

What is Terra Classic used for and how to use Terra Classic?

The use case of Terra Classic may expand as the crypto market and the project itself develop. Currently, you can use LUNC to achieve the following goals:
Arbitrage by trading LUNC: Since LUNC is a frequently traded cryptocurrency, the price of LUNC is always fluctuating. Earn more LUNC by buying low and selling high on the exchange. Bitget spot market provides a variety of LUNC trading pairs to fully meet your needs.
Earn by staking LUNC: You can also generate income through financial management methods such as staking LUNC or lending LUNC. Bitget Earn offers a variety of financial products designed to help you earn more income from your LUNC.
Send or pay LUNC: If you want to give LUNC to your friends, a charity, or a fundraiser, or you want to pay someone with LUNC, you can quickly and easily send LUNC to the recipient through their payment address.
You can also go to the official website of the Terra Classic project to learn more about the use cases of LUNC. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

Terra Classic Wiki

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