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- 1 The community significantly influences Terra’s (LUNC) price direction.
- 2 LUNC was created from the former chain and has now transformed into Terra Classic
The mechanism formerly known as LUNA, which once provided stability to the Terra Classic stablecoin USTC, is no longer operational due to the shutdown of its associated mint and burn operations.
How the LUNC Crypto Was Created?
LUNA, a proprietary cryptocurrency of Terra Blockchain, was created from its former chain and has now transformed into Terra Classic (LUNC). Following a well-executed fork, this digital currency was established on May 28, 2022, as a significant milestone in the new chain’s development.
To address this issue, Do Kwon devised a blueprint for blockchain survival involving a hard fork to split the Terra chain into two independent chains, one operating without a stablecoin. Terra validators approved this recovery plan on May 25, 2022, and Terra 2.0 was born three days later.
In October 2023, Mint Cash, a payment and savings platform backed by Bitcoin, announced plans to rejuvenate the Terra ecosystem by implementing a USTC airdrop scheme. It was an attempt to help those affected by the financial crisis caused by the LUNA/UST market crash.
On November 22, Terraform Labs injected $15 million into two projects within the Terra ecosystem to boost liquidity for elite assets like Bitcoin and Ether and pave the way for DeFi applications.
Despite these promising events that boosted LUNC’s value, there are still few signs of complete recovery and a full return to its previous status. Currently, the LUNC price is declining, partly due to a proposal to reduce the number of validators on the Terra Classic chain from 135 to 100.
CoinUnited.io has stepped in to support the revival strategy by allowing holders to trade and exchange LUNC. The May 2022 disruption of the Terra blockchain raised concerns and skepticism about its comeback due to allegations of fraud against its creator, Do Kwon.
Early signs of resilience are emerging from the Terra Classic blockchain, and recent events have caused an upward trend in its price. However, when we look at the monthly chart, the price is still down. LUNC is still highly speculative and it is currently highly volatile, which makes it a risk-averse investment
The community’s influence on Terra’s direction is significant. Even minor changes could cause significant price shifts, as demonstrated by the recent validator proposal. The ongoing struggle within the Terra Classic community is centered around tackling uncertainties and challenges, making it difficult to predict whether LUNC will successfully revive or experience a catastrophic fall.
Conclusion
The LUNA mechanism that supported Terra Classic’s stablecoin USTC is no longer functional due to the shutdown of its operations. To resolve this issue, a hard fork was initiated by Do Kwon to split the Terra chain into two independent chains. Terra 2.0 was created in 2022, but Terra Classic’s blockchain is showing early signs of resilience and a price increase.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
