Following the collapse of Terra LUNA (LUNA), its founder, Do Kwon, planned a complete revival of the platform. As part of the recovery plan, a hard fork occurred in late May 2022. The fork resulted in two separate chains – Terra 2.0 as the new chain and Terra Classic (LUNC) as the legacy chain.
What is Terra Classic
Terra Classic is a decentralized blockchain platform built to provide scalable, efficient, and interoperable solutions within the crypto space. Its native token, LUNC, is the network's backbone, facilitating transactions and interactions within the Terra Classic ecosystem.
The Terra Classic token, LUNC, was introduced in 2018 as the first native token of the Terra blockchain. Since the demise of Terraform Labs, the Terra Classic community has become even more decentralized as it is now undertaken by devoted members instead of a centralized entity.
The Terra Classic team
Prior to its collapse, Terra was led by founder Do Kwon, who was an accomplished blockchain developer and entrepreneur. Following Do Kwon's departure from the Terra team, a new initiative to revitalize Terra Classic is underway. A team of six engineers, who call themselves the “Six Samurais,” is driving this effort, aiming to distance themselves from past concerns and reconstruct the project.
How does Terra Classic work
The Terra network has been divided into two chains as per the new governance plan. Terra Classic (LUNC) will be the old chain, whereas Terra 2.0, which will use LUNA tokens, will be the new chain. The old LUNA will co-exist with Terra 2.0 instead of being completely replaced. As for Terra Classic, it operates using a variety of components that together create a seamless and secure blockchain network. It functions similarly to a blockchain ecosystem that enables smart contracts, decentralized finance (DeFi), and GameFi to thrive.
Terra Classic’s native token: LUNC
As the native token, LUNC serves multiple functions within the ecosystem, including governance participation, transaction fee payments, and accessing various services and features.
LUNC tokenomics
LUNC has an uncapped maximum supply, and its current total supply is 6,838,945,094,809 LUNC.
LUNC use cases
While there are far less DeFi and dApps on the Terra Classic ecosystem today than before, the community still enables a number of use cases for the LUNC cryptocurrency. Within the Terra Classic network, it is being used for smart contracts and DeFi protocols.
Distribution of LUNC
The initial distribution of LUNC is as follows:
- 26 percent was allocated to project backers.
- 20 percent went to employees and contributors.
- 20 percent to the Terra alliance.
- 20 percent was allocated to the price stability reserve.
- 10 percent to Terraform Labs.
- 4 percent went towards the Genesis Liquidity.
What the future holds for Terra Classic
Despite the demise of Terra, existing community members remain committed to developing the Terra Classic ecosystem and expanding its functionalities and continue developing innovative solutions that fulfill the demands of both individuals and businesses. With an inclusive and decentralized ethos, Terra Classic is focused on fostering user-friendly applications, forging strategic partnerships, and driving mass adoption.
