What is Terra? Fueled by a passionate community and deep developer talent pool, the Terra blockchain is fully community-owned and built to enable the next generation of Web3 products and services 1.

The events that happened in May 2022 in the world of cryptocurrencies were unprecedented in the history of this asset class; More than 40 billion dollars of capital was lost and many small investors from billion dollar funds suffered losses.

LUNA's market value was about 30 billion dollars shortly before the collapse. The consequences of what happened to the Terra network and the LUNA currency were so severe that there have been at least 8 confirmed cases of suicide due to capital loss in the Terra ecosystem.

Even though, it seems that Terra is resurging thanks to its relaunch on Cosmos ecosystem.

Why are validators important? Staking is one of the most attractive features of the cryptocurrencies and for Terra, is not an exception. Lets take a look at the number of cumulative stakers since the start of this year, as well as the number of LUNA staked.

The Terra network is based on the Delegated Proof-of-Stake consensus algorithm, where miners (validators) need to stake a native cryptocurrency LUNA to mine Terra transactions. Delegation mechanism allows anyone who wants to support the network and earn staking rewards to delegate to the chosen validator. Staking rewards are first distributed to validators who take a commission for providing their operations and then are withdrawn individually by delegators 2.