Terra is a blockchain payment network of decentralized stablecoins. The market cap is $27,862,159 and the 24h volume is $3,851,539.
Terra blockchain consensus is achieved via Tendermint. Investors can participate via staking or delegating. Currently there are 2 options to earn passive income and staking rewards with your Terra investment as outlined below.
Run a Validator Node
- How to stake LUNA?
There are two ways to earn rewards with Luna; either directly staking through being a validator delegate by running a validator node and being one of top 100 in terms of delegated Luna, or by delegating Luna to one of such validators.
Delegating LUNA is very easy, secure and can be done within a few minutes directly inside the wallet. For specific instructions this guide is very helpful.
- How much can i earn staking LUNA?
Rewards from staking are based off transaction volume inside the Terra economy, taxes and seigniorage rewards (value gained from issuing new Terra).
- What are the requirements for staking LUNA?
It is a huge responsibility to run a validator, so it is easiest to stake through delegating your Luna. As a delegator, there is no minimum requirement to stake Luna.
- Is there a risk to stake LUNA?
Terra is a stablecoin protocol, but Luna does not have the stability properties of the Terra coins, which it collateralizes.
If you stake Luna, you will not be able to have access to it for at least 21 days as they will be locked.
Validators have a responsibility to report exchange rate price accurately and keep solid architecture, and those who underperform risk being slashed a small percentage. To minimize this risk as a delegator, you should split large stakes among several reputable validators and keep your delegates in check.