Terra LUNA

Terra (LUNA) is an open-source Proof-of-Stake Layer 1 blockchain for decentralized applications, smart contracts and programmable financial services. The current Terra mainnet, identified by the chain ID phoenix-1, launched on May 27, 2022 following a community governance proposal to create a new network after the collapse of the original Terra ecosystem.

The pre-2022 blockchain continues separately as Terra Classic, where its native assets were renamed LUNC and USTC. The current Terra network uses LUNA as its native staking and governance asset and does not include the algorithmic stablecoin mechanism that defined the original Terra Classic design.

Terra is built with the Cosmos SDK and uses a stake-weighted validator system for consensus. LUNA holders can delegate tokens to validators, who propose and verify blocks, while delegators can participate in network security and earn staking rewards. Staked LUNA also provides voting power in Terra’s on-chain governance system.

Smart contracts on Terra use CosmWasm, allowing developers to build decentralized applications using WebAssembly-based contracts. The network also supports Inter-Blockchain Communication (IBC), providing interoperability with other compatible blockchain ecosystems.

The current Terra chain began with a genesis supply of 1 billion LUNA distributed to community pools and eligible holders of assets from the pre-collapse Terra ecosystem. LUNA does not have a fixed maximum supply: the protocol currently mints new LUNA as staking rewards at a fixed annual inflation rate of 7%, with inflation parameters subject to governance.

Development remains open source through Terra Core, the reference node implementation of the network. Terra Core continues to receive software releases and protocol updates, while Terra Finder, Station and public developer documentation provide tools for inspecting the blockchain, staking, governance and application development.