Terra’s native token, LUNA, is now available to trade on Okcoin – with some of the lowest fees around.
- What? You can now deposit, withdraw, and trade LUNA against USD on Okcoin.
- Who? All Okcoin customers including those in the United States, except for residents of the EU, the UK, Singapore, and Brunei.
- When? Deposit, withdrawal, and trading are now live.
Launched in April 2019, Terra is a blockchain protocol secured by a proof-of-stake consensus mechanism. What’s special about Terra though is its focus on stablecoins. Stablecoins are cryptocurrencies pegged to fiat currencies, such as, in this case, the U.S. dollar, the euro, South Korean won, and more. The idea is to get the benefits of crypto such as offering borderless, cheap, near-instant transactions, with the price stability of traditional currencies. Terra has a clever way to make that work, using a self-stabilizing architecture based on two token types.
What’s the LUNA coin?
The Terra protocol runs on two types of assets:
- Terra stablecoins: Each stablecoin on Terra is pegged to a fiat currency, like the USD, the EUR, GBP, the CNY, the JPY, and more.
- LUNA: LUNA is used to maintain the stability of the Terra stablecoins, and to allow its holders to take part in the protocol’s governance.
This design allows Luna holders to play a key role in the protocol:
- First, because they are incentivized to trade it against Terra stablecoins at exchange rates programmed to maintain their price stability by either expanding or contracting their supply.
- Second, because the voting rights of their Luna tokens allow holders to vote for new stablecoins to be added to the list of Terra’s assets.
- Third, because Terra runs on a proof-of-stake mechanism, which means Luna holders can stake their tokens to mine new transactions.
The role of Luna in the protocol explains why it has attracted the attention of big players in the Asian tech scene early on: Terra has been developed with the support of the Terra Alliance, a group of 15 big Asian e-commerce companies – with 45 million users and $25 billion transaction volume per year.