The Terras blockchain has a mission to improve the efficiency of the global payments system and recently completed a Columbus upgrade.
The upgrade is having a big impact on the entire ecosystem as his stablecoin TerraUSD and Terras utility token Luna rose over 10,000% to 11 this year. have risenNS Cryptocurrencies by market capitalization. Terra’s Columbus 5 can stimulate demand for UST and Terra by opening the door to new networks and decentralized projects. The deflationary aspect of LUNA could drive prices higher if all goes according to plan.
Terra does not use a single property. It uses two and what’s good for UST is good for LUNA, but for different reasons. This is because UST is an algorithmically stable coin, which means that it uses the second LUNA token to get its equivalent in US dollars. Luna, as Terra’s utility token, is created when the demand for UST is low and burned when the demand for UST increases. The upgrade includes some major technological changes to TErra, but the biggest change is that its utility token, LUNA, will be burned into the Terra-minted stablecoin, which will not be transferred to the communal pool after being burned. All LUNA used to mint UST will be permanently lost and the existing community group will also be burned.
Switching to the LUNA write, which is used to mint UST, will further increase the value of LUNA as the UST transaction volume increases as a result, after the upgrade appears to require more LUNA writes. All of this will put deflationary pressures on the asset, similar to the effect EIP-1559 has on Ethereum. Terra was part of the Cosmos ecosystem and is now integrated with Cosmos’ inter-blockchain communication protocol called Stargate, which increases compatibility with Cosmos, which means that data can be exchanged between Terra and other Cosmos blockchains such as Solana and Polkadot. The Stargate integration opens Terra to hundreds of dapps in the Cosmos ecosystem and will be even more useful.
The Colobus 5 upgrade increases the winnings paid to their LUNA delegates for proof of stake in the Terra network, as network contributors receive the swap fee generated when someone with the Terra Station wallet app sends a Transaction made so the fee was burned. The upcoming Wormhole Bridge was launched by Columbus 5 and will connect Terra to Solana’s network so that the UST coin can be used in the SOL ecosystem. It is important for crypto investors to remember that the UST is very experimental and controversial as it is only supported by an algorithm that uses the value of LUNA to maintain a stable price for the UST.
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