• Rebranded from Terra, Terra Classic is a public blockchain based on Tendermint. It is home to the algorithmic stablecoin TerraClassicUSD (USTC).

  • After the depeg of USTC in May 2022, the community behind Terra Classic decided to create a new blockchain without the algorithmic stablecoins called Terra 2.0. The new LUNA tokens were airdropped to the old users that were affected by the depeg event.

  • USTC's stability mechanism depends on arbitrage activities by users. For instance, when the price of USTC falls to $0.95 in secondary markets, users can purchase 100 USTC with $95 on exchanges, and redeem these tokens on the Terra platform for LUNC tokens worth $100. If the price of 1 USTC goes above $1, users can purchase USTC on the Terra Classic platform and sell on exchanges for a profit.

  • LUNC is the native token of the project. The current use cases for LUNC include:

    • Staking: Users stake LUNC to validators who record and verify transactions on the blockchain in exchange for rewards from transaction fees.

    • Governance: Token holders can participate in treasury governance and stakers can participate in proposals and voting.

    • Paying Fees: Users use LUNC for processing transactions and storing data.

  • The project consists of the following major components working in conjunction:

    • TerraClassicUSD (USTC): A native stablecoin on the blockchain. Its stability mechanism depends on arbitrage activities by users. USTC was severely depegged in May 2022.

    • Terra SDK: A full SDK that enables developers to build in the Terra ecosystem with AssemblyScript.

    • Terra Station: Terra Station is the official wallet of Terra, allowing transactions, smart contract testing and interactions, and other functions.

  • Circulating and total supply data.

    • As at May 31st 2022, the total token supply of LUNC token is 6,906,711,034,142. The current circulating supply is ~6,539,430,000,000 (94.7% of the total token supply).