Terra Classic

FAQ's

What is Terra Classic?

Terra Classic is a blockchain protocol that enables the issuance of price-stable cryptocurrencies (called Terra stablecoins) that track the value of major fiat world currencies, providing the requisite infrastructure for a decentralized economy.

What is LUNC?

LUNC is the native staking and governance token for Terra Classic and collateralizes the Terra Classic economy. LUNC can be staked in order to earn rewards from transaction activity within the Terra Classic economy, as well as vote for on-chain governance proposals.

How was Terra Classic launched?

Launched in April 2019, Terra Classics’s mainnet is designed for decentralized applications that use stablecoin Terra Classic as their underlying currency. To push mainstream adoption, Terra Classic partnered with a formidable alliance of leading eCommerce companies in Asia, including industry giants such as TMON (Korea), Carousell (Singapore), Qoo10 (Singapore), and Tiki (Vietnam).

To date, 25 eCommerce platforms that collectively have $50 billion in annual transaction volume have joined the Terra Alliance to offer Terra Classic as a payment option to their 50 million users.

Who is the team behind Terra Classic?

Terra Classic was started by cofounders Do Kwon and Dan Shin, and the team is based in South Korea and Singapore.

Do studied Computer Science at Stanford, was an engineer at Apple and Microsoft, and brings his expertise in distributed systems from his previous startup, Anyfi. Dan is a serial entrepreneur and founded TMON, one of the largest e-commerce platforms in South Korea, and brings experience and deep networks in e-commerce.

Whereas other stablecoin projects exist as technical novelties, Terra Classic is driven by an ambitious, BD-oriented team dedicated to real-world use cases and its mainstream adoption.

What is the difference between Terra Classic and Terra?

Terra Classic is the original chain, which was launched in 2019.

After UST’s Depeg event, a new Terra chain was created with a fork.

The governance token is LUNA Classic (LUNC) – the renamed old Terra token and the new LUNA token.

Both tokens are mostly the same and have the same functionalities. The main difference lies in the fact that the new LUNA chain does not collateralize an algorithmic stablecoin (UST).

 

How to stake LUNC?

There are two ways to earn rewards with LUNC; by running a validator node and being in the top 100 in terms of delegated LUNC, or by delegating LUNC to a validator.

Delegating LUNC is very easy, secure and can be done within a few minutes directly inside your wallet.

• Open Terra Station and click Stake.
• Select the Validator with which you would like to stake and click on their name in the Monitor column of the validator list.
• In the My delegations section, click Delegate and a new window will appear.
• In the Amount field, specify the amount of LUNC you want to delegate.
• Confirm the transaction details, enter your password and click Submit.

Note: It is recommended to maintain some funds in your wallet for future transactions. Without available capital for fee payment, you will not be able to carry out further transactions until more tokens are transferred to your wallet.

What is the definition of MarketCap, Staked Value, and Participating %?

At the top of the page, we have 3 metrics per asset. For Terra Classic these are defined as follows:

Market Cap – the USD value of all the LUNC currently in circulation. This does not include any tokens that are still unvested or locked; such as Team Tokens or Unvested Presale tokens.

Staked Value – the USD value of all the LUNC currently being used to stake. Some assets, such as LUNC, allow unvested tokens to be staked. That is why Staked Value can be close to, or in some cases, even higher than the Market Cap.

Participating – the percentage of eligible tokens that are being staked. In the case of LUNC, unvested tokens can also be staked and therefore the staked percentage might seem lower than what you would expect looking at Staked Value vs Market Cap. In this case, the Participating rate would be Staked Value divided by Fully Diluted Value.

How much can I earn staking LUNC?

Rewards from staking are based off transaction volume inside the Terra Classic economy, taxes and seigniorage rewards (value gained from issuing new LUNC).

What are the requirements for staking LUNC?

It is a huge responsibility to run a validator, so it is easiest to stake through delegating your LUNC. As a delegator, there is no minimum requirement to stake LUNC.

Is there a risk to stake LUNC?

Terra Classic is a stablecoin protocol, but LUNC does not have the stability properties of the Terra coins, which it collateralizes.

If you stake LUNC, 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.