Let’s discuss how to Stake LUNC and Terra-LUNA classic (LUNC).
The collapse of the billion-dollar ecosystem Terra-Luna in May 2022 could be the most major cryptocurrency crash in the industry’s history. Luna, Terra’s native token, intended to support UST value, the world’s largest algorithm stablecoin, also plummeted to near zero in a week. UST & LUNA were two of the top ten currencies before the crises.
Do Kwon presented the Terra Ecosystem Revival Plan 2 after the ecosystem crashed, and the brand-new Terra Blockchain came online on May 28, 2022. An earlier blockchain called “Terra Classic” is still in operation, and LUNC has been experiencing an increase in its price because of the v22 upgrade.
If you have a LUNC in your wallet, you can stake them to earn passive income by following the procedure below.
Staking Luna Classic (LUNC)
If you want to stake your LUNC, here is the step-by-step procedure.
- Visit Terra station.
- Connect your Terra Wallet by clicking the “Connect” button on the right of the page.
- Select any validator mentioned on the stake page.
- After choosing a validator, click on “Delegate” to continue.
- Enter the LUNC number you want to stake.
- Next, click on the “Submit” button to confirm your transaction.
It is safer and better to delegate LUNCs to smaller validators and stake them. LUNC’s new v22 upgrade enables customers to regain a fraction of what they lost in the May crash. The crash was the worst as millions of users lost their life savings over a few days.
What is Terra Classic (LUNC)?
Terra is a blockchain that powers a value-stabilized global payment system using fiat-pegged stablecoins. Besides, Terra combines price stability and censorship resistance of fiat currencies with Bitcoin (BTC) and offers fast and affordable settlements.
The development of Terra began in January 2018, but its main net launched in 2019. As of September 2021, it offers stablecoins with a basket of special drawing rights for the US dollar. South Korean won, Mongolian Tugrik, and International Monetary Fund currencies_and it plans to roll out additional options.
The developers started the new chain genesis block on May 28, 2022, which aims to conduct future transactions under the name Terra (Luna). They renamed all network coins, including UST, KRT, and EUT, into Terra Classic stablecoins, and there will be no stablecoins on the new chain.
What is Luna Classic (LUNC)?
Luna Classic (LUNC) is the native coin of Terra Blockchain, released in August 2018 and existed before the new chain launch, working with the original Terra ecosystem coin. It aimed to absorb the price deviation of the algorithmic stablecoin, $UST.
In May 2022, UST lost its peg and collapsed, creating trillions of Luna tokens that went into a hyperinflationary spiral and reduced the value of the original Luna tokens by 99%.
Difference Between Terra Luna & Terra Classic LUNC
LUNC and Luna are their respective chains’ staking tokens for governance with the right to exist as the result of the implementation of Terra Ecosystem Revival Plan 2. The essence of the plan is to divide the existing blockchain by forking, which creates a new chain in the ecosystem, protecting the previous version.
The founders rebranded the existing chain into Terra Classic and airdropped new Luna tokens to existing Luna and UST holders before the crash occurred.
The main difference between these tokens is that Terra LUNC acts as an arbitrage mechanism as it has algorithmic stablecoin. On the other hand, Luna has no algorithmic stablecoins, so it doesn’t operate as an arbitrage mechanism.
Who are the Founders of Terra Classic?
Daniel Shin and Do Kwon founded Terra in January 2018 and conceived the project to drive the quick adoption of blockchain technology and cryptocurrency, focusing on price stability and usability.
Before developing Terra, Shin co-founded and headed Ticket Monster, while Kwon founded and served as CEO of Anyfi. Does Kwon also take over as CEO of Terraform Labs, The company behind Terra?
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What Makes Terra Classic Unique?
Terra uses fiat-pegged stablecoins to combine the immense benefits of cryptocurrencies with the daily price stability of fiat currencies. It maintains its on-to-one peg via an algorithm adjusting the stablecoin supply depending on its demand.
Terra incentivizes Luna holders to exchange Luna & stablecoins at a profitable exchange rate as required to increase or contract the stablecoin supply to meet demand. Additionally, Terra Alliance, a group of businesses and platforms, supports Terra for its adoption.