#Write2Earn The Terra Classic protocol consisted of two main cryptocurrencies: Terra Classic stablecoins and LUNC coin. The largest stablecoin on Terra is USTC (USTC before the hard fork), whose price is theoretically equal to the US dollar.

Terra Classic suffered a serious loss in value in May 2022, due to the deterioration of price stability at USTC at 1 USD. While this depreciation reached up to 99.99 percent on the LUNC side, it reached up to 98 percent on the USTC side, whose theoretical value is 1 USD.

Before the hard fork, LUNC coin served as a native staking coin that absorbed the price volatility of stablecoins issued on Terra Classic. Through the Terra Classic platform, users can burn their LUNC coins and create stable cryptocurrencies such as USTC in return. For example, to create 1 USTC, 1 USD worth of LUNC coins must be burned. Since the amount in circulation decreases with each LUNC coin burned, the LUNC price is positively affected by this process. On the contrary, users can convert 1 USTC token into LUNC coin worth 1 USD at the current market price. In this case, negative pressure may occur on the price as the number of LUNC coins in circulation increases.