🌓 Understanding LUNC, USTC, and LUNA 2 – The Terra Split Explained
After the dramatic collapse of the Terra ecosystem in 2022, the network was divided into two parts: the old Terra chain and the new Terra chain. This led to the creation of three separate tokens that still confuse many people today. Here’s the clearest way to understand them:
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1️⃣ LUNC (Luna Classic)
LUNC is the original Terra token, previously known simply as LUNA.
When the algorithmic stablecoin UST lost its peg and triggered a market crash in 2022, the original Terra blockchain was rebranded as Terra Classic, and its native token was renamed LUNC.
• Represents the old chain
• Maintained by an active community
• Continues to be traded on major exchanges
• Still focuses on rebuilding after the collapse
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2️⃣ USTC (TerraClassicUSD)
USTC is the old version of UST, the algorithmic stablecoin that was once meant to stay at $1.
After the crash, UST was renamed USTC to distinguish it from any new stablecoin issued under the Terra 2.0 ecosystem.
• Algorithmic stablecoin from the old Terra system
• No longer stable or pegged to $1
• Still trades and is part of community-led revival ideas
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3️⃣ Luna 2 (New LUNA)
Luna 2 is the new token launched after the collapse.
It belongs to the new Terra 2.0 blockchain, which was created to rebuild the ecosystem without the flaws of the old UST mechanism.
• Completely separate from the old chain
• No algorithmic stablecoin linked to it
• Designed as a “reset” for the Terra ecosystem
• Distributed to previous LUNA/UST holders through airdrop
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🔍 In Summary
• LUNC + USTC = Old Terra ecosystem (collapsed but still active and supported by a strong community)
• LUNA 2 = New Terra ecosystem, created after the crash and not connected to USTC
