Terra is an algorithmic stablecoin platform operating on a Proof of Stake (PoS) blockchain underpinned by Tendermint.
LUNA is Terra’s platform token, used for the issuance of stablecoins (TerraSDRs), price stabilization mechanisms, and network governance.
Users can swap LUNA tokens for TerraSDRs stablecoins and vice versa, ensuring the stability of the stablecoin’s value.

Luna is the mining token for Terras Delegated Proof of Stake (DPoS) blockchain, which is supported by Luna. As a result, miners provide stability and security. The protocol offers stable mining rewards in all economic conditions through transaction fees and seigniorage at exchanges.

The price-stabilized digital currency designed by Terra will power the next generation of blockchain payment networks. Terra has established a global e-commerce alliance with continuously growing users, bringing the benefits of low-cost blockchain transactions to merchants and consumers. Terra aims to link digital currencies with real-world applications, evolving into an open platform for innovative financial decentralized applications (dApps) and achieving tangible growth in the blockchain economy. Terra was founded by experts in business, finance, and blockchain technology and has offices in Singapore and South Korea.

Terra’s system for price stabilization relies on user arbitrage behavior. For example, when the TerraKRW stablecoin, pegged to the South Korean won, falls to 0.95:1.00 against the won, users can acquire 100 TerraKRW on the exchange for 95 won worth of cryptocurrency and then redeem it with the Terra platform for a LUNA token worth 100 won. If the price of TerraKRW rises above 1 won, users can swap LUNA tokens for TerraKRW and sell them on the exchange for a profit.
The Terra platform aims to provide predictable rewards to network maintainers regardless of the state of the network’s economy. Terra uses transaction fees and LUNA token burn mechanisms to hedge against fluctuations in unit rewards.