Introduction of Luna Classic (LUNC) - Learn with MEXC Global
Luna Classic or LUNC is the native asset of Terra Classic blockchain, used to be known as LUNA. The hard fork of Terra and renaming of this token from LUNA to Luna Classic resulted from the collapse of LUNA and UST back in May 2022. The native asset of the new Terra Luna network, which was developed to prevent collapse in the future, is now known as LUNA 2.0, and is referred to by the token name "LUNA."
Core Features of LUNC Token
The algorithmic stablecoin USTC, whose price stability is maintained by LUNC, is coupled with USTC to retain its value. Since USTC is meant to be tied at a 1:1 ratio to US dollars, 1 USTC should be equivalent to $1.
- Users may burn 1 USTC to the system and mint $1 worth of LUNC when USTC's price is less than $1.
- Users may burn $1 worth of LUNC to the system and mint 1 UST when USTC's price exceeds $1.
Mechanism of Terra Classic
Users of Terra Classic may stake LUNA Classic (LUNC) to the validators who are in charge of verifying and recording all blockchain transactions as blocks. The validator will be compensated for their work by receiving a portion of LUNC tokens.
There is danger that the Terra Classic stablecoin will become more valuableit is paired with as demand for it rises. In this scenario, the ecosystem would burn additional LUNC tokens from its total supply in order to create stablecoins that satisfy demand and bring the price back into the fiat-pegged range.