Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
Decrypt 
Bloomberg

*This content is for educational purposes and is not investment advice.

After peaking at $19.54 earlier on Saturday, it's been mostly downhill.

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On Saturday, May 28, 2022, LUNA classic and UST classic holders received an airdrop consisting of new LUNA 2.0 tokens based on two blockchain snapshots. The crypto asset's first recorded value at 5 a.m. (ET), was $14.31 per unit and it hit an all-time high (ATH) roughly 20 minutes later at $18.87 per LUNA. LUNA […]

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70% of the new tokens have been earmarked for an airdrop to Terra asset holders on the Classic chain. The post Terra gets second life as new blockchain goes live with LUNA 2.0 airdrop appeared first on The Block.

Terra gets second life as new blockchain goes live with LUNA 2.0 airdrop

Terra (LUNA) is announcing the airdrop of Terra 2.0 after a community vote passed Proposal 1623, a bill calling for a new blockchain. Over the past few days, the Terra Twitter account has been updating followers on the progress of Terra 2.0, beginning with the initial announcement thread on May 25. “1/ Terra 2.0 is coming. With […] The post Terra (LUNA) Community Announces Surprise Airdrop of Terra 2.0 appeared first on The Daily Hodl.

Terra (LUNA) Community Announces Surprise Airdrop of Terra 2.0

“If you move too quickly … everybody loses their money,” says Hoskinson, who will speak at Consensus 2022 next month.

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With more than 99.9% of votes approving the proposal, the supply of Terra's stablecoin UST will drop by roughly 11%.

Terra Community Votes Unanimously to Destroy 1.3B UST Tokens

Two of the largest staking companies won't be supporting the new blockchain due to the way it was pushed through. The post Two big staking companies won't support Terra's new blockchain appeared first on The Block.

Two big staking companies won't support Terra's new blockchain

Terra's core developers got approval to burn 1.3 billion UST from its community pool following a governance vote. The post Terra governance system passes plan to burn 1.3 billion UST tokens appeared first on The Block.

Terra governance system passes plan to burn 1.3 billion UST tokens

Cryptocurrency exchanges have pledged support to Terra's upcoming relaunch, following the passing of a proposal to launch a new blockchain.

Crypto Exchanges Including Binance, FTX To Support 'Terra 2.0' Relaunch

The managing director of the International Monetary Fund (IMF) reportedly said that investors should not completely pull out of crypto after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). IMF Chief Has a Message for Crypto Investors After the Collapse of LUNA, UST Kristalina Georgieva, the managing director of the International Monetary Fund […]

IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA, UST

Crypto exchanges have started throwing their weight behind Do Kwon's plan to raise Terra and its token LUNA from the ashes of a devastating collapse earlier this month. The post Crypto exchanges signal support for Terra's ‘rebirth' appeared first on The Block.

Crypto exchanges signal support for Terra's ‘rebirth'

According to a recent announcement from the Terra blockchain team, the community voted and passed a proposal that plans to launch a new genesis version of the Terra blockchain without an algorithmic stablecoin. The governance proposal called “Terra Ecosystem Revival Plan 2” has been amended and the final release of the new Terra Core codebase […]

A New Terra Network Is Coming With Support From Major Exchanges, LUNA and UST Holders Eligible for Airdropped Tokens

Republican Senator Pat Toomey of Pennsylvania says that investors of Ethereum challenger Terra (LUNA) and its algorithmic stablecoin TerraUSD (UST) may have been defrauded after both of the crypto projects collapsed earlier this month. In a new interview with Barron's, Toomey says that the underlying mechanism designed to keep TerraUSD pegged to the dollar may […] The post US Senator Pat Toomey Says Terra (LUNA) Investors May Have Been Defrauded: Report appeared first on The Daily Hodl.

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In an interview at Cannes, Shrem also shared with Decrypt details on his new crypto film-financing project.

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Backers of Terra have voted to revive the failed cryptocurrency venture without its controversial UST stablecoin.

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At fintech conferences, payment firms, lenders, and neobanks often take center stage over their counterparts in crypto. But at Finance Foward in Hamburg last week the fallout from the de-pegging of UST hung in the air.  The post At Finance Forward, fintech couldn't avoid talking about Terra appeared first on The Block.

At Finance Forward, fintech couldn't avoid talking about Terra

The opposition by CME to FTX's proposal for margin disintermediation continues to play out in the public eye.  The post At CFTC panel, CME exec slams FTX proposal by drawing comparison to Terra's collapse appeared first on The Block.

At CFTC panel, CME exec slams FTX proposal by drawing comparison to Terra's collapse

The proposal's approval means that the new network is scheduled to launch on Friday, with a fresh round of LUNA tokens airdropped to existing investors.

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The new Terra blockchain will be launched in the next couple of days and includes a new distribution of LUNA tokens.

Terra Community Approves Do Kwon's Plans to Revive Project

Decentralized finance (DeFi) project Lido Finance voted overwhelmingly against supporting the new Terra blockchain, with less than 5.5% voting in favor. The revival plan was approved by Terra's network validators today.

Terra's revival plan was approved by network validators earlier Wednesday.

The governance vote on Do Kwon's proposal to relaunch the Terra blockchain and create LUNA 2.0 tokens has passed. The post Do Kwon's plan to rebirth the Terra blockchain gets approved appeared first on The Block.

Do Kwon's plan to rebirth the Terra blockchain gets approved

Lido Finance has decided not to support the new Terra blockchain when it launches, due to perceived risks. The post Lido Finance refuses to support Terra's new blockchain appeared first on The Block.

Lido Finance refuses to support Terra's new blockchain

Acting OCC Head Michael Hsu is doubling down on the bank regulator's careful approach to crypto, though he says he sees potential in crypto. The post OCC's Hsu reiterates “careful and cautious” approach after Terra collapse appeared first on The Block.

OCC's Hsu reiterates “careful and cautious” approach after Terra collapse

South Korean regulators are mulling plans for the crypto industry following Terra's collapse this month. The post Terra's ‘vortex of death' brings scrutiny from South Korean regulators appeared first on The Block.

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