We were there to witness the catastrophic failure of Terra's LUNA network happened in May of 2022. Not only did people lose billions of dollars due to the implosion, but it also set off a domino effect that led to the collapse of other prominent cryptocurrency platforms.
The Terra Classic (LUNC) blockchain was created due to a post-collapse split in the original Terra blockchain.
In this blog post, we discuss what Terra Classic is, its history, its features and how to buy LUNC tokens.
What Is Terra Classic (LUNC)?
After the recent UST/Luna collapse and the launch of a new Terra chain, the original Terra LUNA coin in circulation was abandoned, and this coin is now known as LUNA Classic (LUNC).
Kwon's strategy for recouping his losses involved the establishment of an entirely new chain that would serve as the platform for all future transactions. The previous chain was cut in half to create the LUNA Classic and Terra chains. Terra will be the name of the new chain, also known as LUNA 2.0, while LUNA Classic (LUNC) will continue to serve as the native token for the original Terra LUNA blockchain.
The term "classic" refers to the hard fork between Ethereum and Ethereum Classic after the breach in Ethereum's decentralized autonomous organization (DAO) in 2017. As Kwon indicated, This is another tactic to present the UST crash as "Terra's DAO hack moment," as Kwon indicated.
The previous version of the Terra protocol was modified to include enhancements that support stablecoin developers working on decentralized finance (DeFi) projects using Terra. The project included the creation of two different cryptocurrencies, referred to as Terra and LUNA. The Terra cryptocurrency was the industry standard for stablecoins tied to fiat and other currencies. TerraUSD (UST), for instance, is pegged to the value of the United States dollar, whereas TerraKRW (KRT) is pegged to the value of the South Korean won.
The total supply of LUNC is 6904.01 billion. The total market capitalization is around 620.39 million.
What Is the Difference between LUNC and LUNA?
LUNC is not the same as the original LUNA token. Here are some key differences:
- LUNA was the native token of the Terra blockchain prior to its collapse in May 2022. It was designed to maintain a dollar peg through an algorithm.
- When LUNA lost its peg, the Terra blockchain underwent a hard fork, resulting in two separate blockchains - Terra and Terra Classic.
- The original Terra blockchain retained the LUNA token ticker. However, LUNA no longer maintained its dollar peg after the collapse.
- The new Terra Classic blockchain created the LUNC token ticker representing its native currency.
- Holders of LUNA previously received LUNC tokens at a 1:1 ratio through an airdrop after the fork.
- LUNC and LUNA exist on different blockchains now with different objectives. LUNC aims to rebuild the original Terra codebase without the dollar peg.
- LUNA remains on its original blockchain in a de-pegged state with no clear long-term viability. LUNC has emerged as a separate project.
So in summary, while related due to the fork, LUNC and LUNA should be viewed as distinct tokens issued on separate blockchains post-Terra collapse, with LUNC denoting the native currency of Terra Classic.
History of Terra Classic (LUNC)
In January 2018, Terra was founded to alleviate the broad adoption of cryptocurrencies by developing digitally native assets that are price-stable versus the world's major fiat currencies. This was the driving force for the company's creation. As a result of discussions between Terra's co-founders, Daniel Shin and Do Kwon, the idea for Terra was conceived to facilitate the immediate and extensive utilization of the cryptocurrency and blockchain technology that is now being developed.
Features of Terra Classic (LUNC)
LUNC has maintained all of the qualities included in the original Terra Luna coin. It also continues to function as a stabilizing mechanism for the Terra Classic stablecoin, known as TerraUSD (UST).
Voting rights on the course a blockchain project will take can also be granted to holders of LUNC. The two fundamental goals of governance tokens are decentralizing decision-making and providing holders with a voice in project management.
You can put your LUNC tokens to work and generate a passive income by staking them instead of selling them if you use the staking functionality.
It has its internal system for maintaining stability. It is an algorithmic stablecoin. It automatically tracks the price of other currencies or assets.
LUNC Token Value
The native token of the first version of the Terra blockchain is known as Terra Luna Classic (LUNC). It was used as a reward for community members and compensation for the price volatility of the algorithmic stablecoins associated with the blockchain.
The developers had one primary objective when creating LUNC: to reduce the volatility of TerraUSD (UST) and other stablecoins. To accomplish this goal, the following process was put into place:
When there is a drop in user activity on the network and an increase in the demand for stablecoins, additional LUNC tokens are mined. On the other hand, when there is a decrease in user activity, a set amount of LUNC is burned.
How to Buy LUNC Coins?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including LUNC tokens, users can now trade easily and seamlessly.
Here’s how you can buy LUNC from CoinEx.
Sign up using your Google account or email. Once you sign up, you can start trading assets.
If you already have a CoinEx account, this is how you can purchase and sell LUNC coins on CoinEx:
- Enter your login information: To access your CoinEx account, visit the website or launch the app and enter your email and password.
- Put funds in your account to make LUNC purchases. You can deposit the funds via bank transfer, credit card, etc.
- Once you have funds in your account, you may buy LUNC by going to the LUNC trading page and choosing the trading pair you wish to use.
- Tokens (USDT, BTC, ETH, and CET, etc.) can be exchanged for LUNC. Put in your order and the quantity you want to buy.