#LUNA is the native token of Terra, a blockchain that aimed to use algorithmic stablecoins backed by LUNA.

LUNA served as an internal store of value to stabilize Terra's stablecoins: by issuing or burning those stablecoins, LUNA was created or destroyed, maintaining its parity.

In May 2022, the system collapsed when the main stablecoin lost its peg: its value plummeted drastically and LUNA fell almost to zero, wiping out tens of billions of dollars in market value.

After that event, the network was restructured: the original chain was renamed Terra Classic with its token LUNC, managed by the community; while a new version retains the name LUNA, with a renewed project.