$LUNC
What is Terra Classic (LUNC)?
Terra Classic, commonly known as LUNC, is the legacy token of the Terra blockchain, which was initially launched to support global payments through its stablecoin system. Terra emerged from the vision of Terraform Labs in 2018 and went live on Mainnet in 2019, using a Proof-of-Stake (PoS) consensus mechanism. Originally called LUNA, LUNC played a crucial role in this ecosystem by facilitating transaction validation and staking mechanisms.
The Terra platform quickly gained popularity due to its innovative approach to stablecoin transactions, which were not backed by fiat currencies but by algorithmic mechanisms tied to its sister token, LUNA. This system allowed users to mint and burn the UST stablecoin to maintain its peg to the dollar. Unfortunately, this mechanism went downhill in May 2022 when UST lost its peg due to market manipulation and the actions of one of its founders, Do Kwon, leading to a catastrophic 99% drop in the value of both UST and LUNA.
Following this collapse, the community and developers began a blockchain split, creating a new Terra chain and rebranding the original one as Luna Classic (LUNC). This event is reminiscent of the Ethereum and Ethereum Classic split, with LUNC paralleling Ethereum Classic as the original, ongoing chain under an old title.
