$14.250 / $13.170
What is Terra (LUNA)
Terra (LUNA) defines itself as a price stable crypto currency aimed at mass adoption. Per its white paper, while price stable crypto currencies are combining the best of both fiat and Bitcoin, not many have a clear plan for the adoption of such a currency. A successful new digital currency needs to maximize adoption in order to become useful, because the value of a cyrrency as a medium of exchange is mainly driven by its network effects.
Terra is supposedly both price stable and growth driven. Thanks to its elastic money supply enabled by stable mining incentives, Terra could achieve its price stability. Terra employs a form of automated monetary policy to keep its price stable, contracting the supply when prices are too low, and expanding it when prices are too high. LUNA is the crypto currency that make this happen by acting as a monetary policy instrument and earns transaction fees as a form of reward.