Most blockchains buy price data from external oracles like Chainlink, but Terra Classic chose to let the nodes handle it themselves. In each short voting period, validators directly submit the exchange rate of $LUNC .
By bringing the price-feeding function back in-house, it directly cuts off reliance on third-party data. The entire mechanism is now a closed loop, but it also shifts all the price-manipulation resistance pressure onto the nodes themselves—system security can only rely on internal checks and balances.
By bringing the price-feeding function back in-house, it directly cuts off reliance on third-party data. The entire mechanism is now a closed loop, but it also shifts all the price-manipulation resistance pressure onto the nodes themselves—system security can only rely on internal checks and balances.