What Is Terra 2.0 (LUNA 2.0)? | Your Ultimate Guide (2023)

Terra 2.0 is here, minus its disgraced sister stablecoin UST. Can Do Kwon’s Terraform Labs bounce back?

Contents

  • The LUNA airdrop
  • LUNA price action: the big sell off
  • LUNA: trading stats
  • What is Terra 2.0 (LUNA 2.0)'s consensus method?
  • LUNA 2.0 sans UST: Is there a point?
  • FAQs

Click here for an in-depth price prediction for Terra Luna 2.0.

On May 25 2022, the future of Do Kwon’s Terraform Labs enterprise was determined by Prop 1623. Put to a vote by Terra Luna holders – the so-called LUNAtics – the community proposal to rebuild Terra Network sans the discredited UST stablecoin was agreed upon with a clear 65.5% “yes”vote. After the collapse in value of the LUNA token from more than $80 to around $0.0002,old LUNA was to be rebranded to Luna Classic (LUNC), UST to aUST, and the new LUNA 2.0 coin was to be airdropped to LUNC and aUST holders.

Airdropping of the new LUNA 2.0 token swiftly commenced and on 28 May, the Terra v2 blockchain produced its first block. How has Terra Luna V2 faredsince then? How does Terra 2.0 work and what is LUNA 2.0 coin used for? The following guide aims to give you everything you need to know and more. What is Terra 2.0 (LUNA 2.0)? Keep reading to find out!

The LUNA airdrop

If Terraform Labs was to salvage someof its reputation, fair distribution of the new Terra 2.0 (LUNA 2.0) token was of critical importance. Over 99% of LUNA 1.0 holders held less than $10,000 each before the pre-attack snapshot taken on 7 May, or 6.45% in total. One wonders if the LUNA 2.0 coin airdrop could have emphasised this portion of the community, which representedthe vast majority ofLUNAtics, over a handful of LUNA 1.0 whales.

Ultimately, the LUNA 2.0 coin airdrop was distributed evenly across account sizes, although some aUST whales were excluded. The breakdown was as follows:

  • Pre-attack LUNA 1.0 holders: 30%
  • <$10,000 wallets subject to six month cliff then two year vesting period
  • <$1m wallet subject to one year cliff, then two year vesting period
  • >$1m holders subject to one year cliff, then four year vesting period
  • Post-attack LUNA holders (snapshot taken on 27 May): 10%, subject to six month cliff then two year vesting period
  • Pre-attack aUST holders ($500,000 whale cap): 10%, subject to six month cliff then two year vesting period
  • Post-attack aUST holders: 15%, subject to a six month cliff then two year vesting periodCommunity pool: 30%, with 10% earmarked for developers

All cliffs and vesting periods impacted 70% of allocation, while 30% was fully distributed instantly. The airdrop did not go seamlessly, with Terraform Labs’ Twitter page continuing to be flooded with claims of missing tokens.

Terraform Labs stated via Twitter on 31 May that “more information will be provided when we have gathered all of the data, so stay tuned”.

LUNA price action: the big sell off

The LUNA 2.0 airdrop had cliffs and vesting periods in place for 70% of supply, leaving 30% susceptible to being dumped. According to Currency.com, this is precisely what happened when previous UST holders, uninterested in the revamped project, engaged in a “massive sell off”.

LUNA 2.0 waned once again, falling from its debut price of $18 to $3.63 on the first day of trading. Two days later, on 30 May, LUNA 2.0 managed to crawl back above the $10 mark, although the run was brief. As of 31 May 11:30 BST (+1 UST), LUNA 2.0 was changing hands at $8.79.

(Video) Terra Luna 2.0 ~ The Crypto Reset Explained

LUNA: trading stats

LUNA 2.0 coin has a supply cap of one billion tokens, 210 million of which are currently in circulation. The exchange value as of 31 May 11:30 BST (+1 UST) was $8.79m, producing a market capitalisation of $1.75bn. A 24-hour trading volume of $854m comprised 45.1% of market capitalisation.

LUNA 2.0 quickly gained support from many high-profile centralised exchanges, including KuCoin, Binance, Gate.io and Kraken.

What is Terra 2.0 (LUNA 2.0)'s consensus method?

The Terra 2.0 cryptocurrency blockchain uses a standard proof-of-stake (PoS) consensus algorithm to validate transactions. At any one time, 130 validators participatein network consensus, with voting powers determined by the amount of LUNA 2.0 bonded to the node. Rewards are generated from gas fees and a 7% fixed annual LUNA 2.0inflation rate.

LUNA 2.0 holders participate in consensus by delegating LUNA 2.0 tokens to a validator of their choice. Validators usually put up their own stake alongside delegates. In this system, the validation node retains a commission before distributing rewards to delegators.

Returns generated for Terra 2.0 cryptocurrency delegators vary between validators; those with higher voting power naturally generate more rewards, but they must be distributed among a larger pool ofdelegators.

At the time of writing, the top validator, Orbital Command, had3.01% of voting power and wasretaining 0% commission. The top 10 validators hada combined 14.73% of voting power, with commissions ranging from 0% to 10%.

What Is Terra 2.0 (LUNA 2.0)? | Your Ultimate Guide (1)

Delegating can be performed through the Terra Station portal, but be aware that it comes with an element of risk: validators can be penalised for misbehaving, resulting in staked LUNA 2.0 being slashed. Slashing can occur even if the validators accidentally goes offline for a short period of time.

LUNA 2.0 sans UST: Is there a point?

Before UST crashed, the utility of LUNA 1.0 was intrinsically linked to the stablecoin. To retain UST’s peg, a complex system of stablecoin arbitrage was conducted between the two cryptocurrencies. Given the close relationship between LUNA 1.0 and UST, it is fair to ask what the point of the former is without the latter.

There is no objective answer here. Brand power is a powerful thing, and before the crash, both UST and LUNA 1.0 were among the 10 largest cryptocurrencies by market capitalisation. Active LUNA 1.0 addresses numbered more than 400,000 in January 2022, not miles behind Ethereum’s active address count, which ranged between 480,000 and 54,000 in the same month.

What Is Terra 2.0 (LUNA 2.0)? | Your Ultimate Guide (2)

Whether Terraform Labs can ever get these numbers back is debatable. LUNAtic or not, no investor wants to be fooled twice, and short-term price action has not exactly been positive.

(Video) TERRA LUNA UST LUNA 2.0 UPDATES EVERYTHING YOU NEED TO KNOW

Enticing DApp developers could be even harder. A healthy LUNA 2.0 cryptocurrency needs a healthy blockchain ecosystem behind it, and a healthy blockchain ecosystem needs a thriving community of developers committed to bringing the ecosystem to life.

Needless to say, it is still very early days, and no one can be sure if LUNA 2.0 will come out on top or wane once again.

FAQs

When was Terra 2.0 (LUNA 2.0) launched?

Terra 2.0 (LUNA 2.0) was launched on 28 May after a successful vote under Prop 1623 by the LUNAtic community.

How many Terra 2.0 coins are there?

There are currently 210 million LUNA 2.0 coins in circulation, out of a supply cap of one billion.

Who created Terra 2.0?

Do Kwon is the Singapore-based co-founder and chief executive officer of Terraform Labs, the company behind the Terra blockchain, former UST stablecoin, and the LUNA 2.0 cryptocurrency.

Is Terra 2.0 secure?

Terra 2.0 (LUNA 2.0) is secured via 130 active proof-of-stake validators. Many in the crypto community have obvious concerns about the stability of LUNA 2.0 given the disaster that befell the coin’s previous iteration. So far, no evidence of hacking or foul play has been discovered, although investors should understand the risks before opening a LUNA 2.0 position. Foul play or not, LUNA in both its iterations has proved to be a volatile asset. Currency.com recommends conducting thorough due diligence coupled with independent financial advice before investing.

(Video) Terra Luna 2.0 (LUNA) Price Prediction

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.

FAQs

What is the purpose of Terra Luna? ›

Luna is the Terra protocol's native staking token. Luna is used for governance and in mining. Users stake Luna to validators who record and verify transactions on the blockchain in exchange for rewards from transaction fees.

Is Luna 2.0 same as Terra Luna? ›

Despite their striking similarities, LUNA Classic and LUNA 2.0 are not the same. The Terra network has been divided into two chains under the new governance plan. Terra Classic with Luna Classic tokens (LUNC) will be the old chain, whereas Terra with LUNA tokens will be the new chain called LUNA 2.0.

Is Luna a good investment 2022? ›

According to the forecast by the Government Capital crypto analytical source, LUNA's value may strive to surpass the $120.25 mark in the middle of 2022. By the end of July, the Terra (LUNA) exchange rate could be fixed at $123.47.

Is Luna Terra a good investment? ›

Terra (LUNA) Price Prediction According to Experts

Many crypto experts find Terra (LUNA) as a very attractive cryptocurrency because Terra (LUNA) has great potential and ambition as a medium of exchange and payment. Another reason, Terra (LUNA) has entered the top 10 leading cryptocurrencies by market cap.

Is Terra Luna better than ethereum? ›

Terra Luna beats Ethereum to become the second most preferred proof of stake network for crypto miners.

Is Terra dead crypto? ›

The collapse of the Terra project led to combined losses of about $60 billion between the stablecoin, also known as UST, and its sister cryptocurrency luna.

What will happen to my Luna coins? ›

To maintain that peg, LUNA would be created and traded to limit the UST supply or burned (permanently destroyed) to mint new UST tokens.

What does Luna 2.0 do? ›

Luna 2.0 is the brand new token of the new Terra blockchain intended to rescue the Terra Luna ecosystem following the stablecoin collapse. Dubbed the Luna rebirth, TerraForm Labs founder Do Kwon's proposal saw new chain replace the existing Terra network.

Why did Luna fail? ›

Both Luna and UST crashed once UST lost its peg to the dollar, which was what qualified it as a stablecoin. TerraUSD was risky because it wasn't backed by cash, treasuries or other traditional assets like the popular stablecoin tether. The stability of UST was derived from algorithms that linked the value to Luna.

What Cryptos that will skyrocket in 2022? ›

8 next cryptocurrencies to explode in 2022
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  • Ethereum. At first glance, Ethereum (CRYPTO:ETH) might seem out of place here. ...
  • Aave. ...
  • SushiSwap. ...
  • Monero. ...
  • Storj. ...
  • Basic Attention Token. ...
  • XRP.

Will Luna recover to $1 dollar? ›

For LUNA to reach $1, the market capitalisation would have to reach $7 trillion, assuming the existing supply remains unchanged. Given that the whole crypto market capitalisation peaked at $3 trillion, this is now unachievable.

How much is Terra Luna worth in 2030? ›

Terra (luna) Price Predictions 2025-2030

The price of Terra is expected to rise from $237.24 at the beginning of 2025 to $263.93 at the end of 2030.

What will Terra be worth in 2025? ›

How much will Terra Luna Classic be worth in November 2025? According to the Terra Luna Classic Price Prediction model above, LUNC's price in November 2025 would be $280.39. This price would however would range from $300.02 and $260.76.

What will Terra Luna be worth in 2023? ›

The long term sentiment, however, remains bullish and LUNC could hit $166.51 in 2023. The total circulating supply of Terra Luna Classic as of writing this article was $6881355024075.87 and the marketcap of LUNC remains at $1,702,035,878.

Should I buy Terra now? ›

Terra Luna Price Prediction for the rest of 2022

We expect for the LUNA crypto price depreciating trend to continue. The fear and greed index is displaying “fear” with 27 out of 28 technical analysis suggesting investors should sell. Based on our Terra Classic forecast, it's now a bad time to buy Terra Classic.

Is Luna better than Solana? ›

While both are good investments, LUNA has better odds in the long-run. Both Terra (LUNA) and Solana (SOL) are good crypto assets to invest.

Is Terra an Ethereum killer? ›

Ethereum Killer Terra (LUNA) Reaches Major Milestone in DeFi: Details. Terra (LUNA), the second largest blockchain by total volume of assets locked across all DeFi protocols, is on the eve of capturing a double-digit share of the global Web3 ecosystem.

Will Luna surpass Ethereum? ›

LUNA surpassed Ethereum

The value of staked LUNA assets on the Terra blockchain has hit $28 billion, nearly $3 billion higher than Ethereum's $25 billion, according to Stake Rewards statistics.

Will Luna 2.0 go up? ›

LUNA2/USD forecast: Targets for 2022, 2025 and 2030

According to the LUNA2/USD prediction from CoinCodex based on technical analysis, as of 28 October, the coin price could fall by 2.49% to reach $2.36 by 2 November 2022. The platform's 1-month forecast saw the token trading at $0.814 by 27 November.

Does Luna 2.0 have potential? ›

2.Do you think LUNA 2.0 has the potential to be a lucrative investment? For the long haul, investing in LUNA 2.0 is a good idea. You should only invest money that you can afford to lose. As long as the token remains at its current discount, even a small investment may pay out in the future.

Can Luna recover again? ›

It's possible. But first it's important to understand why Luna crashed to get a realistic idea of how Luna can recover.

Is it worth buying Luna now? ›

It might be but it may very well not be. LUNA coin was behaving bullishly in 2021 and some analysts predict this trend to resume. However, the token has recently undergone a huge crash, with the cryptocurrency falling out of the top 10 by market cap.

What is the future of Luna? ›

By 2031, its Terra Luna coin price prediction anticipates it to climb to $0.0004. Terra Classic is expected to see a gradual climb and hit $0.002 in 2028. According to its LUNA coin price prediction for 2030, the cryptocurrency is expected to reach $0.003 that year.

Why is Luna coin so good? ›

Terra (LUNA) brings a lot of benefits to the market. Its decentralized and permissionless nature makes it ideal for the digital economy. The network offers competitive programmable payments, logistics, and an infrastructure designed to simplify Dapp and stablecoin development.

Is Luna an ethereum? ›

LUNA is the native staking token of the Terra protocol. We support the Ethereum (ERC-20) version of LUNA, which is a multi-chain asset. LUNA purchased on Gemini can be withdrawn to Ethereum compatible wallets and swapped to the native version of LUNA using a bridge.

What is the difference between Luna and Terra? ›

In short, Terra (LUNA) and TerraUSD (UST) are linked, but they are different things. UST is a stablecoin that is supposed to stay at $1 at all times, while LUNA was a regular crypto that is burned whenever new UST are minted.

Why did Luna crypto crash? ›

The immediate cause was the implosion of terra – a so-called stablecoin, designed to reduce volatility in the crypto market by maintaining a fixed value over time.

Is Luna a cryptocurrency? ›

The coin replaces the old Luna cryptocurrency and trades under its ticker symbol, LUNA. Investors who lost money in Terraform Labs' previous coins may get some new tokens free, based on a ratio determined by the company. The old Luna coin can still be traded, but under a new name, called Luna Classic.

Has Luna been abandoned? ›

Dropping to new lows, Luna has now been abandoned, with Terra launching a new chain and new coin - Luna 2.0.

What happens when a Cryptocurrency goes to zero? ›

We've established that the value of crypto can never fall below zero. But investors can lose money on crypto investments and see a negative balance depending on their investing strategy.

What is the cheapest crypto to explode in 2022? ›

Calvaria (RIA) - New Play to Earn Cryptos with Potential to Explode in 2022. Uniglo.io - Multi-Asset Backed DAO Ready to List in Top 150. Tamadoge (TAMA) - Exciting Meme Coin Project Pumping since IEO. Battle Infinity (IBAT) - NFT-Based Sports Fantasy P2E Platform and Ecosystem.

Can Solana reach $10000? ›

It's unlikely for Solana to hit $10,000. However, there are some sources that make such a prediction. For example, Trading Education predicts SOL to reach $10,000 by 2040. While the likelihood of this happening is low, it is still possible.

Which coin is next Bitcoin? ›

Ethereum (ETH)

The upgrade also allows the Ethereum network to handle more transactions per second, improve the platform's scalability and lower transaction fees. Compared to bitcoin, ethereum lacks scarcity — bitcoin supply is capped at 21 million coins — and widespread acceptance by companies and governments.

Can LUNA coin reach$ 1? ›

Terra LUNA Price Prediction: 2022, 2023, 2024, 2025

However, rebranding has somewhat assisted the price to rise above $1 but still remains heavily bearish. In the coming days, the LUNA price is expected to break above the consolidation and achieve the target.

Can a Shiba Inu reach $1? ›

If Shiba Inu pulls a similar move in 2022, it could easily trade at $1 by the end of 2022. However, taking a more conservative approach to the price of SHIB, 2030 seems like the earliest it can trade at $1. The assumption here is that SHIB keeps rallying by a couple of thousand percentage points every bull cycle.

How much is Luna worth in 2022? ›

LUNA's price prediction is possible by analyzing historical price action, current developments and social sentiment from the community. Terra price prediction 2022: Terra's price for 2022 according to our analysis should range between $1.93 to $2.89 and the average price of LUNA should be around $2.41.

What will Solana be worth 2022? ›

The price of Solana is expected to reach a maximum price of $65.17 in 2022.

How much does a Shiba Inu 2030 cost? ›

Back in April, Finder surveyed a panel of 26 experts who predicted a rather gloomy picture for the future of Shiba Inu coin. They predicted that the average price of SHIB in 2030 will be as low as $0.000000325.

How high will Shiba Inu go in 2025? ›

By 2025, our price prediction forecasts that Shiba Inu (SHIB) could be worth $0.00006.

How many Luna coins are there? ›

6.15 trillion coins

How much can you make staking Terra Luna? ›

Conclusion. When users stake their LUNA, they secure the network and get paid a portion of the swap fees between LUNA and UST. In addition, it qualifies to receive airdrops from many Terra Ecosystem projects. Delegators of Luna can on average earn up to 8.5% APR on their LUNA.

How high can LUNA price go? ›

LUNA Price Prediction 2029

The potential high may trade around $8.22, while the potential low may be $7.48. The average trading value is forecasted to be $7.85 for the year.

What is the future of Terra? ›

The future of Terra is highly dependent on the overall performance of the crypto industry. The average price of Terra (LUNA) might go to $3.13 by the end of 2022. If we estimate the five-year plan, the coin's value can reach the $14.92 mark.

› Cryptocurrencies ›

What is the outlook of the Terra price? We explain whether LUNA is a good investment between 2022 and 2030.
Social listening is a strategy that allows for the monitoring of social media channels to find out what people are saying about individual coins. Our web platfo...
Terra Luna has plunged by more than 95 per cent in today's trading session. The cryptocurrency has also plunged by 99 per cent this week.

What makes Luna Terra unique? ›

What Is Terra (LUNA)? Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. 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.

What will happen to my Luna coins? ›

To maintain that peg, LUNA would be created and traded to limit the UST supply or burned (permanently destroyed) to mint new UST tokens.

Is Terra Luna a stablecoin? ›

But investors were caught by surprise by the sudden drop in TerraUSD's price, because it is a so-called stablecoin. As the name suggests, the raison d'être of stablecoins is to remain stable, as they are supposed to be pegged to fiat currency, such as the dollar or the euro.

Why did Luna and Terra crash? ›

Why did LUNA crash? The Luna crypto crash was caused by its connection to TerraUSD (UST), the algorithmic stablecoin of the Terra network. On May 7, over $2 billion worth of UST was unstaked (taken off the Anchor Protocol), and hundreds of millions of it were quickly liquidated.

Can Luna go back to 1 dollar? ›

"That will never happen", three words that are enough to cast a Terra Luna Classic (LUNC) price prediction on the which obviously rules out the possibility that the price of the cryptocurrency will ever reach 1 dollar, according to this analyst.

Is it worth buying Luna now? ›

It might be but it may very well not be. LUNA coin was behaving bullishly in 2021 and some analysts predict this trend to resume. However, the token has recently undergone a huge crash, with the cryptocurrency falling out of the top 10 by market cap.

Why is Luna dropping so much? ›

Recent market turbulence put too much pressure on LUNA and UST, causing the stablecoin to lose its peg. As investor jitters grew, the Luna Foundation Guard was unable to prevent a run on UST.

What will Terra Luna be worth in 2023? ›

The long term sentiment, however, remains bullish and LUNC could hit $166.51 in 2023. The total circulating supply of Terra Luna Classic as of writing this article was $6881355024075.87 and the marketcap of LUNC remains at $1,702,035,878.

Will Luna 2.0 go up? ›

LUNA2/USD forecast: Targets for 2022, 2025 and 2030

According to the LUNA2/USD prediction from CoinCodex based on technical analysis, as of 28 October, the coin price could fall by 2.49% to reach $2.36 by 2 November 2022. The platform's 1-month forecast saw the token trading at $0.814 by 27 November.

What is the future of Luna? ›

By 2031, its Terra Luna coin price prediction anticipates it to climb to $0.0004. Terra Classic is expected to see a gradual climb and hit $0.002 in 2028. According to its LUNA coin price prediction for 2030, the cryptocurrency is expected to reach $0.003 that year.

Why is Luna crypto so good? ›

Terra (LUNA) brings a lot of benefits to the market. Its decentralized and permissionless nature makes it ideal for the digital economy. The network offers competitive programmable payments, logistics, and an infrastructure designed to simplify Dapp and stablecoin development.

Is Luna built on Ethereum? ›

LUNA is the native staking token of the Terra protocol. We support the Ethereum (ERC-20) version of LUNA, which is a multi-chain asset. LUNA purchased on Gemini can be withdrawn to Ethereum compatible wallets and swapped to the native version of LUNA using a bridge.

Is Luna an Ethereum competitor? ›

Terra's LUNA has emerged as a strong competitor to Ethereum with growing demand among DeFi protocols.

Can Luna recover again? ›

It's possible. But first it's important to understand why Luna crashed to get a realistic idea of how Luna can recover.

How much is Luna Terra worth? ›

LUNA Price Live Data

The live Terra price today is $2.45 USD with a 24-hour trading volume of $130,533,674 USD. We update our LUNA to USD price in real-time. Terra is down 3.67% in the last 24 hours. The current CoinMarketCap ranking is #116, with a live market cap of $311,787,143 USD.

Why is Terra Luna so high? ›

Thanks to the network effect and the strong ecosystem, the demand for Terra stablecoin around the world is growing at an exponentially faster pace, and that will drive up the price of Luna tokens over the long term. Currently, the market cap of Luna is less than $40 billion.

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