Yet Another Acme

    Q184. Refer to submissions for #175 - your own, or those of others. Pick your favorite Terra metric or visualization and recreate your own version.

    One of my favorite coins is Luna, which is one of the top coins that has gained value this year. And it is currently ranked 8th in the market

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    The chart below shows how much demand for UST has increased over the past year.This is a great benchmark for visualizing market growth.The increase in UST volume and growth directly contributes to the growth of the Terra ecosystem.

    How the Terra protocol works:

    Stablecoins are the main feature of the Terra protocol: crypto assets that track the price of an underlying currency. As a digital form of currency, Terra stablecoins can be used just like fiat currency with blockchain’s added benefits: an unchangeable public ledger, instant transactions, faster settlement times, and fewer fees.

    Stablecoins are only valuable to users if they maintain their price peg. The Terra protocol uses the basic market forces of supply and demand to maintain the price of Terra. When the demand for Terra is high and the supply is limited, the price of Terra increases. When the demand for Terra is low and the supply is too large, the price of Terra decreases. The protocol ensures the supply and demand of Terra is always balanced, leading to a stable price.

    Terra and Luna:

    The protocol consists of two main tokens, Terra and Luna.

    Terra: Stablecoins that track the price of fiat currencies. Users mint new Terra by burning Luna. Stablecoins are named for their fiat counterparts. For example, the base Terra stablecoin tracks the price of the IMF’s SDR, named TerraSDR, or SDT. Other stablecoin denominations include TerraUSD or UST, and TerraKRW or KRT. All Terra denominations exist in the same pool.

    •Luna: The Terra protocol’s native staking token that absorbs the price volatility of Terra. Luna is used for governance and in mining. Users stake Luna to validators who record and verify transactions on the blockchain in exchange for rewards from transaction fees. The more Terra is used, the more Luna is worth.

    with the right tokenomics of burning the equivalent Terra Luna for UST, we can also observe the impact on Luna's price.The chart below shows how Luna price increases