Terra is a blockchain protocol that uses stable fiat currencies to power global payment systems. Terra maintains a 1:1 ratio through an algorithm that automatically adjusts the supply of stablecoins based on demand. Terra combines price stability and wide acceptance of fiat currencies, and offers fast and inexpensive payment settlements. Terra Classic (LUNC) was previously known as Terra (LUNA).
From September 2020, the platform offers stablecoins linked to the US dollar, South Korean won, Mongolian tugrik and a basket of currencies offered in cooperation with the International Monetary Fund.
Terry's native token, LUNA, is used to stabilize the protocol's stablecoin price by encouraging LUNA holders to swap LUNA and stablecoins at a favorable rate to increase or decrease the supply of stablecoins to match demand. LUNA holders can also submit and vote on platform management proposals.