Terra Classic (LUNC) is the native token of the original Terra blockchain, which was renamed following its collapse in May 2022. Initially designed to stabilize the price of the algorithmic stablecoin TerraUSD (UST), LUNC has since lost over 99% of its value and is now managed by its community of holders.
Key Features
Historical Role: LUNC (formerly LUNA) was used to ensure the stability of the UST stablecoin through a minting and burning mechanism.
Governance and Staking: LUNC holders can still stake their tokens to participate in transaction validation (Proof-of-Stake) and vote on protocol evolution proposals.
Collapse and Split: After UST lost its parity in May 2022, the original chain experienced massive hyperinflation of LUNC. A relaunch plan led to the creation of a new chain, Terra 2.0 (using the new LUNA token), while the old chain was renamed Terra Classic, retaining LUNC.
Current Status: LUNC is now considered a highly speculative asset, with a very large circulating supply (over 5 trillion tokens). The community uses "burn" mechanisms (token destruction) to try to reduce the supply, but achieving a significant value remains very unlikely due to the massive volume of tokens. $LUNC
