Rebranded from Terra, Terra Classic is a public blockchain based on Tendermint. It is home to the algorithmic stablecoin TerraClassicUSD (USTC).
After the depeg of USTC in May 2022, the community behind Terra Classic decided to create a new blockchain without the algorithmic stablecoins called Terra 2.0. The new LUNA tokens were airdropped to the old users that were affected by the depeg event.
USTC's stability mechanism depends on arbitrage activities by users. For instance, when the price of USTC falls to $0.95 in secondary markets, users can purchase 100 USTC with $95 on exchanges, and redeem these tokens on the Terra platform for LUNC tokens worth $100. If the price of 1 USTC goes above $1, users can purchase USTC on the Terra Classic platform and sell on exchanges for a profit.
LUNC is the native token of the project. The current use cases for LUNC include:
Staking: Users stake LUNC to validators who record and verify transactions on the blockchain in exchange for rewards from transaction fees.
Governance: Token holders can participate in treasury governance and stakers can participate in proposals and voting.
Paying Fees: Users use LUNC for processing transactions and storing data.
The project consists of the following major components working in conjunction:
TerraClassicUSD (USTC): A native stablecoin on the blockchain. Its stability mechanism depends on arbitrage activities by users. USTC was severely depegged in May 2022.
Terra SDK: A full SDK that enables developers to build in the Terra ecosystem with AssemblyScript.
Terra Station: Terra Station is the official wallet of Terra, allowing transactions, smart contract testing and interactions, and other functions.
Circulating and total supply data.
As at May 31st 2022, the total token supply of LUNC token is 6,906,711,034,142. The current circulating supply is ~6,539,430,000,000 (94.7% of the total token supply).