- LUNA serves as a governance token and allows users to have a share in shaping the future of the protocol. Completely decentralised as 1 TERRA equals 1 vote.
- Terra LUNA token has a built-in deflationary mechanism to control supply.
- Terra LUNA allows staking rewards that come from gas, stability fees, and swap fees.
- Terra LUNA allows staking airdrops for new projects that are built on its ecosystem.
- Terra penalizes errant validators by slashing their rewards and also their delegator's rewards. Frequent violations can earn jail time or even exclusion from validation for some time.
- Only the top 130 holders are allowed to work as validators leading to centralisation in some aspects.
Terra (LUNA) in a nutshell
The Terra network is a stablecoin provider that seeks to solve price volatility issues and ensure that cryptocurrencies can be used as a payment method in the future. The network works through a native token called LUNA that is used to limit price volatility by a burning and expansion mechanism.
The initial total supply of LUNA was 1 billion tokens. The project functions as a fully decentralised ecosystem. The distribution mechanism is explained below:
Terraform Labs: 10%
Team employees: 20%
Terra Alliance: 20%
Institutional Investors: 26%
Has Terra (LUNA) Token been audited and doxxed?
Yes. The Terra token has been audited by CerTiK. The team behind the Terra Token publishes regular documentation via press releases and is active on social media channels.
Trust & Fairness: 4
Exchanges & Swaps: 4
Overall Rating: 4
Detailed Review of Terra (LUNA)
Terra is a blockchain network that supports stablecoins and was invented to solve issues surrounding the inherent volatility in the price of cryptocurrencies. Terra offers stablecoins pegged to many fiat currencies such as the US dollar but also the special drawing rights of the International Monetary Fund.
The native token LUNA is used to stabilize the price of the stablecoins and is also used for staking and governance purposes. Terra is a decentralized project and holders of the LUNA tokens are entitled to vote for proposals to determine the future of the network. The network also has a secondary token called Terra which is used to furnish stablecoins. Terra is minted by burning the LUNA tokens.
The Terra ecosystem is a vibrant community and supports decentralized finance (DeFi). The network also provides free airdrops to users who decide to stake LUNA tokens through the Terradrops protocol. The Terraform Labs supports the incubation and marketing of new projects that are being built on the Terra network.
Where to Buy Terra Tokens?
The Terra token can be bought on almost all popular exchanges such as OKEx, Binance, Digifinex, Coinbase, Nominex, WazirX, Gate.io, FTX, Huobi Global, KuCoin, Bithumb, Kraken, Crypto.com, Gemini, Bitfinex, Coinone, Poloniex, Phemex, LBank, Upbit, Paribu, CoinDCX, LATOKEN, and BitForex, Bybit, Bittrex, Balancer, Upbit, BitWell, XT.COM, Bitexen, WooNetwork, and Bitvavo.
You can buy Terra either through cash via P2P (peer-to-peer), credit or debit cards, or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase Terra directly through supported decentralized exchanges such as TerraSwap. All you need to do is connect your wallet such as Metamask and select the appropriate coin pair that you wish to use for purchasing Terra (for example UST/Terra). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing the Terra token. You can also use Terra for purchasing other altcoins through the decentralized route as explained above.
What Can you do With the Terra Token?
Use Terra for staking rewards: Terra holders are entitled to rewards from fees and are also entitled to claim airdrops from new projects that are launched on the Terra network.
Hodl as a long-term investor: You could also simply hodl it and gain from its price appreciation in the long term. The token also generates passive income for its holders as it can be staked. Rewards in Terra from staking can be issued in the form of direct rewards or BAL tokens and trading fees from ETH/Terra Balancer pool tokens.
Swap Terra to other tokens: You can use Terra and directly swap to other altcoins on a decentralized exchange. The process is quick and simple and is described below.
How to Swap Terra to other altcoins
Simply head over to a decentralized exchange and connect your wallet. Then, select the amount of Terra you wish to spend (factoring in transaction fees) and swap it for another crypto token. You will receive the tokens in the same wallet.
How to Buy Terra?
In order to buy Terra, you will need to use a centralized exchange or a decentralized exchange. Decentralized exchanges (DEXs) are simple and easy to use and do not require any registration. The process of token swap on DEXs has been explained above.
For purchasing Terra on a centralized exchange, you will need to register and create an account with the exchange and then deposit fiat currencies or crypto assets that can be used to buy Terra. You will need to complete the Know Your Customer (KYC) procedure to open an account on a centralized exchange.
Steps to open an account on a centralized exchange:
1. Go to the exchange site where Terra (LUNA) is listed and click on the Register button.
2. Then select your country of residence and proceed to the registration interface. Here, you will need to provide your email ID/phone number and a password that will be used to login into the newly created account. You should select an exchange that offers Terra (LUNA) as a product in your country of residence.
3. Click on the agree to terms and conditions button and wait for the verification mail or message.
4. Clicking on the verification tab will take you to your new account. You will need to provide documentation such as a driving license, passport or other government-issued IDs to confirm your identity and address. A utility bill and national ID may also be accepted in some cases. This process is known as the KYC regulation and it is in place to prevent the risk of fraud and to ensure that the site is safe for all users. This is the last step before you proceed to purchase Terra (LUNA).
5. Once this additional step is completed, the exchange will activate your account and you can deposit funds to start trading. You can select fiat currencies or cryptocurrencies supported by the exchange to deposit funds to buy Terra (LUNA).
6. Most exchanges support multiple payment methods including credit/debit cards, bank transfers, third-party payment processors, and P2P transfers for buying Terra (LUNA).
Upcoming Events/Future Roadmap
The Terra network is planning to launch bridges with other blockchain networks that will ensure interoperability between different networks. The Terra network also plans to support privacy layers in the future to provide better services to its users. Luna also has launched other cryptocurrencies such as Terra Luna Classic.
The all-time high price of one Terra (LUNA) was $77.73 on December 5, 2021. It is currently trading at $73.42 at the time of writing (Source: CoinGecko). The all-time low price was $0.121798 on May 18, 2020. Comparing the all-time low and all-time high price, we get returns of about 60472.5% which are very impressive returns. The Terra token is slowly establishing its position as a leading cryptocurrency. The Terra price can be checked on sites like CoinGecko and CoinMarketCap.