What exactly does Luna2.0 refer to?
Luna2.0 refers to a major upgrade and fork of the Terra blockchain network, designed to solve the problems faced by the old LUNA token and UST stablecoin. Luna2.0 is a new version of the Terra network, which is different from the old LUNA token, which has been renamed Terra Classic (LUNC), while the old LUNA token has been renamed Terra Classic USD (USTC).
Main changes and features of Luna2.0
Dual currency system changed to single currency system: Luna2.0 cancels the original "LUNA-UST" dual currency system and changes to the LUNA single currency model. This means that the algorithmic stablecoin UST is completely removed and LUNA becomes the only token.
Issuance cap: The issuance cap of the new LUNA is 1 billion, while the old LUNA is unlimited in supply. This change is designed to avoid the problem of unlimited inflation in extreme cases.
Community support: The new LUNA will continue to be built and developed with the help of the LUNA community known as "LUNAtics.
Background and purpose of Luna2.0
Luna2.0 was launched to solve the problems faced by the old versions of LUNA and UST. The failure of the old versions of LUNA and UST was mainly due to the price instability and eventual collapse caused by the defects of algorithmic stablecoins. In order to rebuild trust and stability, the Terra team decided to fork and launch the new Luna2.0 version.
