Detailed explanation about LUNA and LUNC
Introduction
Terra is a blockchain network that uses two independent currencies, the new LUNA and the classic LUNC. Both currencies are related to the stablecoin Terra USTC
LUNA New Terra
1The economic system combines algorithmic modifications and a reserve mechanism backed by real assets such as Bitcoin BTC
2The purpose is to maintain the parity of UST with the US dollar
3The feature aims to achieve greater stability than the classic Terra mechanism
4Updates Terra 2.0 was launched after the collapse of classic Terra
LUNC Classic Terra
1The economic system uses only an algorithmic mechanism
2The purpose is to maintain the parity of USTC with the US dollar
3The problem The collapse of the system led to the separation of USTC from the US dollar
4The result is high volatility in the value of LUNC
Comparison between LUNA and LUNC
1Stability LUNA aims to be more stable than LUNC
2The working mechanism LUNA uses a dual algorithmic and reserve mechanism while LUNC uses only an algorithmic mechanism
3The results LUNC is prone to explosion and volatility while LUNA aims for greater stability
