Luna2.0 is an upgraded version of the Terra blockchain, aimed at addressing the issues present in the old version and rebooting the ecosystem.
The launch of Luna2.0 was prompted by the failure of the old Luna (Terra 1.0) and its algorithmic stablecoin UST, which led to the collapse of the entire ecosystem. To rebuild the ecosystem, the project team decided to create a new public chain Terra 2.0 and called for previous projects to migrate to the new chain.
Main changes and features of Luna2.0
Dual currency system changed to single currency system: Luna2.0 has abolished the original "LUNA-UST" dual currency system, transitioning to a single LUNA currency model. This means that the algorithmic stablecoin UST has been completely removed to avoid the instability issues that algorithmic stablecoins may bring.
Issuance cap: The issuance cap for the new token LUNA is set at 1 billion pieces, while the old version of LUNA had an unlimited supply. This change aims to prevent the issue of infinite inflation in extreme situations.
Through these changes and measures, Luna2.0 aims to rebuild and stabilize the Terra ecosystem, providing new opportunities for investors, but it also requires investors to exercise caution to avoid repeating past mistakes.