Coinmerce App
What is Terra?
Terra is a blockchain platform where the LUNA token helps power network activity like paying fees, staking for security, and voting on governance.
Category | Smart contract platform and ecosystem token |
|---|---|
Launch year | 2022 |
Date added | 2022-05-26 |
Platform | Osmosis (OSMO) |
Consensus mechanism | Proof of Stake with Tendermint consensus |
Max supply | Unlimited |
Circulating supply | 709,984,438.91686 LUNA |
Main use case | Gas fees, staking, and governance on the Terra blockchain |
All time high | 17.58 EUR (2022-05-28) |
All time low | 0.03942067 EUR (2025-10-10) |
Crypto data and labels can change over time. For important decisions, double check key facts in multiple sources and review the latest market information.
Download the app
Trusted by 500,000+ users.
What is Terra (LUNA)?
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements. Development on Terra began in January 2018, and its mainnet officially launched in April 2019. As of September 2020, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik and the International Monetary Fund's Special Drawing Rights basket of currencies — and it intends to roll out additional options. Terra's native token, LUNA, is used to stabilize the price of the protocol's stablecoins. LUNA holders are also able to submit and vote on governance proposals.
Who founded Terra?
Terra was founded in January 2018 by Daniel Shin and Do Kwon. The two conceived of the project to drive the rapid adoption of blockchain technology and cryptocurrency through a focus on price stability and usability. Kwon took on the position of CEO of Terraform Labs, the company behind Terra. Before developing Terra, Shin co-founded and headed Ticket Monster, otherwise known as TMON — a central South Korean e-commerce platform. He later co-founded Fast Track Asia, a startup incubator working with entrepreneurs to build fully functional companies. Kwon previously founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
How does Terra works?
Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand. Terra has established several partnerships with payments platforms, particularly in the Asia-Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korea-based mobile payments application, in which purchases made using the application on e-commerce platforms are processed via the Terra blockchain network. Each transaction is subject to (on average) a 2%–3% fee charged to the merchant. In addition, Terra is supported by the Terra Alliance, a group of businesses and platforms advocating for the adoption of Terra. In February 2019, the company announced that e-commerce platforms from 10 different countries, representing a user base of 45 million and a gross merchandise value of $25 billion, were alliance members.
Can I earn money with Terra?
Yes, you can earn money by trading Terra (LUNA). Buy low, sell high. Terra can be used to trade against other cryptocurrencies. Always trade responsibly. Often the price is affected by Terra news. Buy Terra at Coinmerce.
Staking and delegation in plain language
In Proof of Stake systems like Terra, validators are responsible for helping confirm transactions. They do this while staking tokens, which gives them something to lose if they act irresponsibly. If you delegate LUNA, you are essentially lending your stake to a validator. The validator does the technical work, while your delegation supports their ability to participate in consensus. Rewards and penalties depend on how validators perform. Slashing can remove part of staked tokens if a validator misbehaves or goes offline, so delegation still involves risk.
How governance affects the network
Terra uses governance where token holders can vote on proposals. In practice, governance is a way to coordinate changes when there is no single owner. If a proposal passes, it can change parameters or how the protocol operates. That can affect developers, app users, and anyone who holds or stakes LUNA. Governance also means there can be disagreement. Different groups may want different outcomes, so it helps to watch proposals and understand what they change.
Why LUNA value is connected to network activity
LUNA is used to pay gas fees, which are the costs of using the network. When more people interact with decentralized applications, there can be more demand for the token to cover those fees. LUNA is also used for staking, which supports the security model. Staking participation can influence how validators operate and how the network maintains integrity. This does not guarantee price increases. Token price still depends on broader market demand, but understanding these roles helps you see what the token is designed to do.
Ecosystem context and cross network interactions
CoinMarketCap lists Terra with a platform of Osmosis, and the tags include osmosis ecosystem. That suggests Terra is commonly discussed in relation to Osmosis and the wider ecosystem around it. In many crypto ecosystems, users move value and interact with applications across networks. The details depend on the specific bridges, interfaces, and application design. If you plan to use Terra in an ecosystem context, focus on how assets move, what the security model is for those interactions, and what risks apply to the specific app you use.
What to watch if you follow Terra
A practical way to follow Terra is to look at network usage and how many people are interacting with applications. Since LUNA is used for gas fees, meaningful activity can matter. Next, monitor governance proposals and outcomes. Governance changes can alter how the protocol works, which can affect users and developers. Finally, keep an eye on security and reliability. Proof of Stake systems depend on validators behaving well, and application security matters for users.
The basics of Terra in plain language
What is Terra?
If you want to learn about Terra, read all about it in the What is overview.
FAQ
Dutch-built, globally trusted.The crypto app you actually want. Made with you in mind.
Join over half a million trusting customers.
Buy crypto in seconds.Use your local payment method and own crypto instantly.
Buy, sell and swap over 350 cryptocurrencies.
Download the app
Trusted by 500,000+ users.