Terra Classic (LUNC) is a blockchain protocol that uses fiat-pegged stablecoins to power payment systems. LUNCH is the native cryptocurrency of the Terra Classic blockchain.
The creation of LUNC on May 28, 2022, was a result of a hard fork designed to revive the network after the collapse of the TerraUSD (UST) stablecoin in May 2022. This event led to the separation of Terra Classic from its successor, Terra 2.0, introducing LUNC as part of the network's recovery efforts.
The Terra blockchain, founded by Do Kwon and Daniel Shin in January 2018, faced challenges when its UST stablecoin destabilized, impacting not only Luna but the broader cryptocurrency market. The subsequent hard fork split the Terra chain into Terra 2.0, which removed stablecoins from its ecosystem, and Terra Classic, which continued with the LUNC token.
LUNC employs a token burn mechanism as part of its governance and supply management strategy to help stabilize its ecosystem. Starting with an initial supply of 7 trillion, a 1.2% transaction tax has been used to reduce the circulating supply as a measure to restore value.
Efforts to recover and improve the network include stopping USTC minting and forming partnerships to support ecosystem growth, such as with Mint Cash and Terraform Labs' investments in DeFi applications.
