What exactly is Terra 2.0 (LUNA)?

Terra (LUNA) is a public blockchain protocol based on Terra Classic. Terra Classic is the home of TerraClassicUSD, an algorithmic stablecoin (UST). Luna 2.0 is now known as LUNC token collateralized UST, and it was destroyed in a bank run in May 2022. This effectively devalued LUNA and prompted the establishment of a new chain, resulting in Terra Classic and Terra.

Terra Classic development began in January 2018, and the blockchain went live in April 2019. Through its UST stablecoin, it attempted to combine the price stability and widespread adoption of fiat currencies with Bitcoin's censorship resistance and to provide fast and affordable settlements. Terra Classic provided stablecoins pegged to the US dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's SDR basket of currencies.

The new Terra blockchain continues Terra Classic's legacy without the UST stablecoin. It will continue to evolve the world-class UX and UI that propelled Terra Classic to second place in total value locked (TVL) at its peak with the help of the LUNA community dubbed "LUNAtics." Many DApps have agreed to migrate to Terra in order to continue operating.