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What is Terra coin (LUNA) and how does it work?

by Financial Economy

Terra aims to create a new financial infrastructure. The network is backed by a family of stablecoins, each fixed on major traditional currencies, all algorithmically balanced by Terra’s native token, Luna. Terra’s mission is to liberate money by creating an open financial infrastructure. Detailed information about Terra coin (LUNA) is in the rest of the article. Information about Ethereum, you can browse here.

What is Terra coin (LUNA) and how does it work?

Luna serves as the local asset from which the Terra stablecoin family derives its stability, utility, and value, both as a collateral for the entire Terra economy and as a staking token securing the PoS network. Luna can be used as an investment tool as a normal crypto asset and can be traded on stock exchanges. In addition, it can be used for staking transactions to accumulate rewards from transaction fees on the network. In addition, the Luna coin can be used to have a say in the network and to vote.

On the other hand, Terra platform aims to make traditional payment systems more useful with a single blockchain. Thanks to the Terra platform, users can benefit from lower transaction fees, instant payment convenience and various discounts. In addition, the platform’s stablecoin network is powered by Luna’s stake token, which powers Terra’s Delegated Proof-of-Stake Blockchain.

Luna Terra coin platform also has an application that will serve the purpose of instant payment. CHAI, a redesigned payment system on the Terra Blockchain, offers both businesses and consumers low fees and some benefits. In addition, the Terra stablecoin family provides stability thanks to mining rewards consistent with the shrinking and expanding coin supply.

For example; If the system detects that the price of a Terra currency deviates from the exchange rate, it applies pressure to normalize the price. The currencies in the Luna Terra stablecoin family are as follows: KRT (Terra stablecoin pegged to Korean Won), UST (Terra stablecoin pegged to USD), MNT (Terra stablecoin pegged to Mongolian Togrog), SDR (Terra stablecoin pegged to IMF SDR).

For information about crypto currency: https://en.wikipedia.org/wiki/Cryptocurrency

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